STORY: Rupert Murdoch has lost a bid to change his family trust to consolidate control of his media empire in the hands of his son.
That’s according to the New York Times on Monday, citing a sealed court document.
The trust was set up in Nevada, a state prized for its strict confidentiality rules.
The Times reported that, in a decision on Saturday, Nevada commissioner Edmund Gorman found that Rupert Murdoch and his eldest son, Lachlan, had acted in “bad faith” in their effort to amend the irrevocable trust.
The court docket also showed Gorman had issued a recommendation or order, but the document was not publicly available.
Currently, the trust would divide the Murdoch media empire equally among the 93-year-old’s four oldest children after his death.
The Times Reported that Murdoch proposed amending it to solidify Lachlan’s leadership, and block any interference from his three siblings.
Lachlan is the head of Fox News parent Fox Corp and News Corp and is more politically conservative than his siblings.
Gorman reportedly called the plan to change the trust a “carefully crafted charade” to “permanently cement Lachlan Murdoch’s executive roles” inside the empire “regardless of the impacts such control would have over the companies or the beneficiaries” of the family trust.
A lawyer for Murdoch said they were disappointed with the ruling and intended to appeal, while Lachlan Murdoch did not respond to an email seeking comment, according to the Times.
Lachlan’s siblings James, Elisabeth and Prudence issued a joint statement expressing hope that the family would focus on mending relationships.
The commissioner’s ruling is subject to approval by a district judge, whose decision could be challenged in court.
