Fox News has found a “very low probability” of a settlement with the Department of Justice in a lawsuit alleging that the network defrauded investors by misleading them about the future of the Fox News project in Shreveport.
In a lawsuit filed in April 2017, Shreveports attorney, John D. McTiernan, said the Justice Department had shown “clear and compelling evidence” to show that the Fox Sports network was not likely to be built, but was instead being built as a way to “peddle political favors for the political interests of the city.”
“The city of Shrevepasts’ investment in Fox Sports is a waste of money, and it’s a waste to the people of Shiverport,” McTiernan said.
“The only way to salvage Fox Sports in this case is to sue the federal authorities for defamation.”
In his complaint, McTierns claim that Fox News was not properly licensed and that it “engaged in a reckless disregard for the rights of its investors” in Shiverpasts dealings with the Federal Communications Commission.
In a statement, a spokesperson for the Department’s Civil Rights Division said they were “disappointed” with the court’s decision.
“While we continue to defend the city’s investment in the Fox Network, we are disappointed in the court decision that allowed the case to proceed,” the spokesperson said.
The spokesperson did not elaborate on what actions the Justice would take to seek damages.
Shiverpast officials say that Fox Sports’ construction has not been a priority in recent years, but the city has been paying for the channel’s construction for years.
In an interview with The Shreveton Times-News, the Shreveperian said that the city will be filing a motion to compel Fox Sports to build a new station to serve Shiverpcasts needs.
The city is asking the judge to force Fox Sports “to put in place a plan to continue to provide services and services in the city” and to pay for those services, according to the Shiverporter.
McTiern is a partner with law firm Witherspoon, Drysdale, and Stapleton, which is representing Fox Sports.
A spokesperson for Fox Sports said that Fox was still reviewing the court ruling.
Fox Sports declined to comment on the lawsuit.