Former Fox News host Gretchen Carlson has settled sexual harassment allegations against the network’s ousted chairman, Roger Ailes, and has received a $20 million payment and a public apology from its parent company, 21st Century Fox.
The settlement brings a swift and expensive end to a claim that set in motion Ailes’ downfall from Fox, the cable news network he co-founded in 1996 and guided to dominance in the ensuing two decades.
The Tuesday announcement came on what shaped up as a tumultuous day for Fox News, which also saw the surprise departure of anchor Greta Van Susteren, one of their marquee talents and an Ailes loyalist.
Carlson, the former host of Fox and Friends, sued Ailes on July 6, claiming that she was demoted and eventually let go from Fox after she refused his sexual advances. Ailes has repeatedly denied the allegations.
But 21st Century effectively surrendered after two months of withering publicity about the suit and an alleged culture of harrassment at Fox fostered by Ailes. In addition to its massive payment to Carlson, it issued a statement on Tuesday apologizing to her.
The statement, attributed to 21st Century Fox, read: “During her tenure at Fox News, Gretchen exhibited the highest standards of journalism and professionalism. She developed a loyal audience and was a daily source of information for many Americans. We are proud that she was part of the Fox News team. We sincerely regret and apologize for the fact that Gretchen was not treated with the respect and dignity that she and all of her colleagues deserve. We know Gretchen will be successful in whatever endeavors she chooses in the future.”
Carlson’s suit brought forth at least 20 other women who said, usually anonymously, that Ailes had harassed them during his long career in television. Another former Fox host, Andrea Tantaros, filed a lawsuit against Ailes last month, saying that she, too, was harassed and demoted by Ailes when she rebuffed him.
“I am gratified that 21st Century Fox took decisive action after I filed my complaint,” Carlson said in a Tuesday statement. “I’m ready to move on the next chapter of my life in which I will redouble my efforts to empower women in the workplace. I want to thank all of the brave women who came forward to tell their own stories and the many people across the country who embraced and supported me. … All women deserve a dignified and respectful workplace.”
Although Carlson didn’t name Fox or 21st Century Fox as defendants in her suit against Ailes, 21st Century Fox will bear the entire cost of the $20 million settlement, both sides said.
Ailes, who received a $40 million severance package and a continuing consulting role at Fox News when he resigned in July, will not contribute to the settlement.
The willingness of 21st Century Fox to settle Carlson’s lawsuit just weeks after it was filed appears to reflect the influence of Lachlan and James Murdoch, the sons of 21st Century Fox executive chairman Rupert Murdoch. While Ailes has long enjoyed the loyalty of Rupert Murdoch, the younger Murdochs — who are chairman and chief executive, respectively, of 21st Century Fox — have long clashed with the Fox News founder.
Van Susteren announced on Tuesday she is leaving the cable news channel, effective immediately, after more than a decade hosting an evening public-affairs discussion program.
Van Susteren, who had publicly defended Ailes after Carlson made her accusations, said in a Facebook post that she decided to leave on Thursday.
“Fox has not felt like home to me for a few years and I took advantage of the clause in my contract which allows me to leave now. The clause had a time limitation, meaning I could not wait,” she wrote. “I hope to continue my career in broadcasting.”
Fox said Brit Hume will replace Van Susteren in her 7 p.m. time slot, starting Tuesday night.
The settlement with Carlson may be one of the largest in a case involving a single plaintiff in a sexual harassment action, according to a person close to Carlson, although class-action settlements and verdicts have been larger.
The extraordinary sum paid to Carlson reflects her high annual earnings as a TV personality; Carlson’s lawyers, Martin Hyman and Nancy Erika Smith, argued that Ailes’ actions caused her to lose millions of dollars in future earnings at Fox, triggering talks of an eight-figure payment.
Negotiations between Carlson’s representatives and 21st Century Fox’s attorneys at the Paul, Weiss law firm began about three weeks ago, people involved in the process said.
The company also has settled “several” other sexual-harassment claims against Ailes, according to a source with knowledge of the matter. He did not identify the women involved, but said their complaints arose during an internal investigation conducted by the Paul, Weiss law firm amid Carlson’s allegations.