New York City’s pension funds sued the Fox Corporation and its board on Tuesday, accusing the company of neglecting its duty to shareholders by opening itself up to defamation lawsuits from the persistent broadcasting of falsehoods about the 2020 presidential election.

The lawsuit, filed in the Delaware Court of Chancery, is the most significant shareholder action since Fox settled a blockbuster defamation lawsuit brought by Dominion Voting Systems in April for $787.5 million. The city’s five pension funds represent nearly 800,000 current and retired workers and are worth $253 billion.

“We are shareholders at a company that, unfortunately, has a longstanding practice of allowing conspiracy theories that its executives and its board know are false to be repeated over and over and over again, despite the very clear and present risk of defamation lawsuits eroding shareholder value,” said Brad Lander, New York City’s comptroller, who oversees the pension funds. “And there has been no effort to make governance reforms.”

The funds are long-term shareholders of Fox Corporation, the parent company of Fox News, a spokeswoman for the comptroller said. The funds held about 857,000 shares, valued at $28.10 million, as of July 31.

The State of Oregon, representing Oregon’s public employees retirement fund, joined the New York City funds in their lawsuit against Fox.

A Fox Corporation spokesman declined to comment.

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