News Corp has agreed to pay more than $20.2 billion to settle a lawsuit alleging it misappropriated billions of dollars from the News Corp-owned radio network in its effort to buy a TV station in Alabama.
News Corp will pay $5.7 billion in cash to settle the lawsuit filed in a federal court in Birmingham, according to a person familiar with the terms of the agreement.
The agreement requires News Corp to repay $1.1 billion in liabilities.
News Inc also agreed to forfeit more than 1.4 million shares of stock valued at $9.1 million, the person said.
The company’s chief executive, Craig Newsom, and two other News Corp executives were named as defendants in the lawsuit, which was filed in U.S. District Court for the Southern District of Alabama in Montgomery.
The plaintiffs accuse News Corp of misappropriating more than one-third of the News Corporation radio station in Birmingham and failing to pay it interest and other taxes.
The station is owned by Sinclair Broadcast Group, which owns a number of other regional TV stations.
In the suit, the plaintiffs claim the News Incs misappropriation of News Corp radio station “The Ticket” and misappropriations of News Corporation stock in an effort to acquire a local news channel led to News Corp’s purchase of a TV affiliate in Alabama in 2013.
News Ltd’s ownership of the station is controlled by the News Media Group, the group said in a statement.
News Corporation has a history of making acquisitions that led to the News Network and other news outlets being taken over by News Corp, according the people familiar with News Corps plans.
News Radio is owned and operated by News Media group.
It operates stations in Alabama, Tennessee, Texas and Florida.
News Media is a subsidiary of Sinclair Broadcast group.
News Capital Group and other media assets are controlled by News Group Holdings Inc., which has no relationship with News Corporation, the people said.
The News Corp purchase of the news station was a part of News Inc’s broader $15 billion acquisition of Sinclair in 2017.
News of the settlement was first reported by The Associated Press.
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