FOXA Fox Corporation

By Joe Flint 

A former Fox News executive who left the company after being accused of sexual assault and harassment by an on-air contributor has sued the channel's parent, 21st Century Fox, alleging fraud and breach of contract.

Francisco Cortes, a vice president at Fox News Latino, left the channel last fall after Tamara Holder accused him of exposing himself to her and attempting to force her into a sexual act, people familiar with the matter said. He denies the misconduct alleged by Ms. Holder.

In the suit, filed Tuesday in the Southern District of New York, Mr. Cortes claims that 21st Century Fox violated the terms of a settlement agreement the parties reached by issuing a statement to the New York Times that he claims disparaged him and damaged his reputation.

The Times story in question, which was published on March 8 and lays out Ms. Holder's claim that she was sexually assaulted by Mr. Cortes, includes a statement from Fox News and Ms. Holder that says the network investigated her claim promptly. The statement doesn't refer to Mr. Cortes by name.

Ms. Holder, who no longer has ties to Fox News, received a $2.5 million settlement payment, a person with knowledge of the pact said.

A Fox News spokeswoman said, "The allegations in this lawsuit are frivolous and without merit."

In his complaint, Mr. Cortes says he will provide evidence including emails and photos to show the relationship with Ms. Holder was consensual. Mr. Cortes is seeking $48 million in damages.

21st Century Fox and Wall Street Journal parent News Corp share common ownership.

The Cortes-Holder matter was one of many incidents of alleged sexual harassment Fox News dealt with over the past year. Roger Ailes resigned as the network's chairman and chief executive in July 2016 amid a company investigation into allegations by multiple women that he harassed them. Fox has paid to settle several lawsuits related to Mr. Ailes' alleged misconduct. On-air star Bill O'Reilly also exited after payments he and the channel had made to settle complaints became public.

Mr. Ailes, who died in May, denied all charges of harassment as did Mr. O'Reilly.

Federal prosecutors have been investigating whether 21st Century Fox made sufficient disclosures to its investors about earlier settlements of sexual-harassment claims against Mr. Ailes, people familiar with the matter said. The company has said it is cooperating with the probe.

Write to Joe Flint at joe.flint@wsj.com

(END) Dow Jones Newswires

July 25, 2017 20:49 ET (00:49 GMT)

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