A New York appellate court has allowed Smartmatic’s $2.7 billion defamation lawsuit against Fox Corporation and Fox News to proceed, potentially leading to a high-stakes trial.
At a Glance
- New York court rejects Fox Corp’s attempt to be excluded from Smartmatic’s $2.7 billion lawsuit
- Lawsuit stems from Fox News’s coverage of 2020 election fraud claims
- Case set to proceed to trial, though settlement remains possible
- Fox argues its reporting is protected by First Amendment
- Smartmatic seeks full on-air retraction from Fox News
Legal Battle Continues
The legal battle between Smartmatic and Fox News has intensified as a New York state appeals court rejected Fox Corporation’s attempt to be excluded from a $2.7 billion defamation lawsuit. The case, which stems from Fox News’s coverage of the 2020 U.S. presidential election, alleges that the network promoted unfounded vote-rigging conspiracy theories involving Smartmatic’s voting technology.
The lawsuit, filed in February 2021, claims Fox News “engaged in a conspiracy to spread disinformation about Smartmatic” following the contentious election. The case has now gained momentum, with the court upholding Smartmatic’s claims of potential direct liability on Fox’s part, though it did not support claims for vicarious liability.
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 Demands
Fox Corporation maintains that its election coverage is protected by the First Amendment and disputes the damages claimed by Smartmatic. The network’s spokeswoman stated their readiness to defend the case at trial, criticizing Smartmatic’s damage claims as implausible.
“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.
Smartmatic, on the other hand, is seeking a trial and a full on-air retraction from Fox News for alleged defamation. The voting technology company has also subpoenaed key figures involved in promoting election fraud claims, including former President Donald Trump, Steve Bannon, and Michael Flynn.
Legal Implications and Potential Outcomes
The case is currently in the discovery phase, with a trial expected to start later this year. This legal process could lead to the public release of internal communications, similar to what occurred in the Dominion Voting Systems lawsuit against Fox News, which was settled for $787.5 million in 2023.
“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 battle unfolds, the outcome of this case could have significant implications for media coverage of elections and the balance between press freedom and accountability for spreading misinformation. The trial, set to take place in Manhattan state court, will be closely watched by media observers and legal experts alike.
