Rupert Murdoch loses bid to change family trust
CNN
—
Rupert Murdoch cannot amend his family trust to put the power of his media companies in the hands of his chosen successor, a Nevada commissioner has ruled.
The probate commissioner, who heard several days of secret testimony by Murdoch family members earlier this year, issued a ruling over the weekend, and the 96-page opinion eviscerated Rupert Murdoch and his chosen son, Lachlan Murdoch, according to a person with direct knowledge of the ruling.
Rupert Murdoch, center, and his wife Elena Zhukova Murdoch arrive at the Second Judicial District Court in Reno, Nev., Monday Sept. 16, 2024.
Andy Barron/AP
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The commissioner, Edmund J. Gorman Jr., wrote that Rupert, Lachlan and their representatives had operated in "bad faith," the source said. Gorman's assessment may be a factor in any eventual appeals.
Rupert Murdoch had wanted to amend his irrevocable family trust, which gives his four eldest children equal voting shares upon his death. Under the proposed change, Lachlan, who more closely aligns with his father's conservative views, would consolidate all the power. The other three eldest children, Prudence, Elisabeth and James, objected to the change and contested it in Nevada court.
The court opinion is sealed, and CNN has not reviewed it. The New York Times, which was first to report the ruling, said it obtained a copy.
According to the Times, Gorman wrote that Rupert and Lachlan Murdoch tried to "stack the deck in Lachlan Murdoch's favor after Rupert Murdoch's passing so that his succession would be immutable."
Disputes over the family trust have had the effect of tearing the family apart, sources previously told CNN.
A spokesperson for the three other Murdoch siblings told CNN that they hope to "move beyond this litigation to focus on strengthening and rebuilding relationships among all family members."
An attorney for Rupert Murdoch did not respond to CNN's request for comment. The attorney told the Times they planned to appeal.
