Australia’s Seven West Media and its Seven network may risk reputational damage following Federal Court revelations in Sydney on Thursday and Friday.
The defamation case was brought by former Liberal Party political aide Bruce Lehrmann against Network Ten and journalist Lisa Wilkinson. It does not directly involve Seven.
Lehrmann was tried in court in 2022 over the alleged rape of another political aide, Brittany Higgins, in Canberra in 2021. But the case and a retrial were abandoned with no findings against him.
Lehrmann’s defamation case alleges that Network 10 and Wilkinson have made false claims that he raped Higgins.
Network 10 and Higgins have said that they would defend their reporting as “substantially true.”
In late 2022, Seven, Australia’s most-watched TV network, aired an exclusive two-part interview with Lehrmann. But how its “Spotlight” investigative news program obtained that interview is now the subject of intense debate.
In court on Thursday, former Seven Network producer Taylor Auerbach explained that he had been appointed Lehrmann’s babysitter on a visit to Sydney.
”Mr. Lehrmann had over dinner purchased a bag of cocaine while we were dining at Franca and when we got upstairs to the room he pulled that out and started to put it on a plate and then started talking to me about a prospective ‘Spotlight’ story and his desire to order prostitutes to the Meriton that night … And he began googling a series of websites to try and make that happen,” Auerbach alleged in court.
Auerbach also testified that he was offered a promotion and a pay rise after he used a corporate credit card to purchase Thai massages for himself and Lehrmann. He said that he charged approximately A$10,000 ($6,600) to the card, later confessed the activity and personally reimbursed the money.
Auerbach further testified that he was advised by lawyer Richard Keegan to delete material from his phone and computer that could be damaging to Seven.
Australian media have reported that Lehrmann has denied receiving a massage.
In a statement made late Thursday to the BBC, Seven said that it is “appalled by the allegations made in recent days. We do not condone the behaviors described in these allegations. They do not reflect the culture of Seven,” the statement said. “Seven did not offer a promotion or pay rise to Mr. Auerbach in November 2022, nor did it do so at any time after that.”
Its statement also said that it has complied with all obligations in relation to producing documents and that it had not asked anyone to delete or destroy any evidence. “Seven has acted appropriately at all times,” it said.
Public broadcaster Australian Broadcasting Corporation reported that “Seven executives are dealing with escalating reputational damage that threatens the future of its Spotlight program.”
ABC quoted media commentator and shareholder activist Stephen Mayneas saying that the interview allegations “continue a bit of a pattern, which I think is significantly damaging” and that Seven West’s major shareholder Kerry Stokes “has a history of backing his talent even when there are cultural issues and controversy.” Mayne speculated that Seven may soon shut down the “Spotlight” program.
The Lehmann vs Network 10 and Higgins case was previously closed with a judgement pending, but it was reopened by Justice Michael Lee for the two days of testimony. It has now closed again.
