A New York appellate court has allowed Smartmatic’s $2.7 billion defamation lawsuit against Fox Corp. to proceed, rejecting the media giant’s attempt to be excluded from the case.
At a Glance
- New York court rejects Fox Corp.’s bid to be excluded from Smartmatic’s $2.7 billion defamation lawsuit
- Lawsuit stems from Fox News’s coverage of alleged election fraud in the 2020 presidential election
- Court recognizes Smartmatic’s claims for Fox’s potential direct liability, but not vicarious liability
- Fox argues its coverage is protected under the First Amendment
- Case is currently in the discovery phase, with trial expected later this year
Court Ruling Advances Smartmatic’s Lawsuit
A five-judge panel in New York has upheld a previous ruling that denied Fox Corporation’s motion to dismiss Smartmatic’s $2.7 billion defamation lawsuit. The suit, which stems from Fox News’s coverage of the 2020 presidential election, accuses the network of promoting false claims of election fraud. This decision marks a significant development in the ongoing legal battle between the voting technology company and the media conglomerate.
The appellate court found that Smartmatic had sufficiently demonstrated Fox Corp.’s involvement in what it calls a disinformation campaign. While the court did not establish “vicarious liability” for Fox Corp., it did meet the threshold for claims of direct liability. This ruling means that Fox Corp. will have to answer for its actions in court, potentially exposing the company to significant financial and reputational risks.
Fox was ordered to face a $2.7 billion defamation lawsuit brought by Smartmatic, one of two voting technology companies falsely accused on Fox News of rigging the 2020 US presidential election https://t.co/cKx0nRO8B3
— Bloomberg (@business) January 25, 2024
Fox’s Defense and Smartmatic’s Claims
Fox Corporation maintains that its election coverage is protected under the First Amendment and disputes the damages claimed by Smartmatic. The media company has vowed to defend itself vigorously when the case goes to trial.
“We will be ready to defend this case surrounding extremely newsworthy events when it goes to trial. As a report prepared by our financial expert shows, Smartmatic’s damages claims are implausible, disconnected from reality, and on their face intended to chill First Amendment freedoms,” Fox said.
On the other hand, Smartmatic argues that Fox played a critical role in a coordinated disinformation campaign following the 2020 election. The voting technology company seeks a trial and a full on-air retraction from Fox News for alleged defamation. Smartmatic’s lawsuit includes claims against Fox News anchors Lou Dobbs and Maria Bartiromo, with claims against Jeanine Pirro recently restored by an appeals judge.
Implications and Potential Outcomes
The case, which is currently in the discovery phase, could lead to the public release of internal communications, similar to what occurred in the Dominion Voting Systems lawsuit against Fox. That case resulted in a $787.5 million settlement in 2023, highlighting the potential financial stakes for Fox in the Smartmatic lawsuit.
“Fox Corporation attempted, and failed, to have this case dismissed, and it must now answer for its actions at trial,” Erik Connolly, Smartmatic’s lawyer, stated.
As the legal proceedings continue, the case raises important questions about the balance between press freedom and accountability in reporting on electoral processes. The outcome of this lawsuit could have far-reaching implications for media coverage of elections and the responsibilities of news organizations in verifying and presenting information to the public.
