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NEW YORK (TheStreet) -- Twenty-First Century Fox (FOXA) announced earlier today that it settled with former anchor Gretchen Carlson for $20 million over her sexual harassment lawsuit against former Fox News chief Roger Ailes. The announcement included an apology to Carlson.
Vanity Fair contributing editor Sarah Ellison broke the story on the settlement earlier today and joined CNBC's "Squawk Alley" to provide more details.
"Carlson's suit was logged against Ailes. Why is Fox signing the check?" CNBC's Carl Quintilla asked.
"Under Delaware law, the company must indemnify its top officers," Ellison replied.
So no matter how small or large the settlement would be, Twenty-First Century Fox was always going to "be on the hook," she explained.
Ailes will have to pay a potion of the settlement, but the exact amount has not been reported, Ellison said. However, negotiations between Ailes and the company were "quite tense," she added.
The company is hoping that the settlement and apology will mark the beginning of a fresh start after there have been three complaints of sexual harassment from women that fell within the three-year statue of limitations for sexual harassment in New York State, Ellison said.
