Lachlan Murdoch is suing Fairfax Media for defamation after a column claimed he neglected his duties as chairman of Channel Ten by flying in News Corporation's corporate jet.
The CBD column in The Sydney Morning Herald and The Age attempted to link the performance of Ten, chaired by Mr Murdoch, with the time he was spending on the jet.
"Son Lachlan has also been flying high, in direct contradistinction to the ratings of the Ten Network, where he also is a director," Ben Butler wrote on September 6.
His column was based on information in News Corporation's annual report. But the proxy statement in the annual report referred only to James Murdoch's use of the jet.
The Australian has been told that Lachlan Murdoch has not flown in the jet for seven years.
Lawyers acting for Mr Murdoch issued a statement of claim in the NSW Supreme Court on Tuesday.
"The error is not such that a journalist, no matter how incompetent, could have made. Thus, it will be inferred that the defendant chose deliberately to state that it was Lachlan Murdoch, rather than his brother, knowing that statement was false or recklessly in regard thereto," the claim said.
On Monday, CBD printed an apology, but it did not address the suggestion Ten's performance was linked to Mr Murdoch's duties as a director of News Corporation. "Thursday's CBD column incorrectly said that Lachlan Murdoch used the News Corp corporate jet extensively in the past 12 months," the apology said.
"The Herald apologises to Mr Murdoch for the error and for the suggestion that he used his position as a director of News Corp for his personal benefit."
It is understood Lachlan Murdoch is seeking $50,000 for a charity of his choice and a full apology for the damage to his professional reputation. It is understood both sides were negotiating last night, and a settlement could be reached.
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