A crucial development in law could soon take place, as Fox Corp. must defend itself in a $2.7 billion defamation lawsuit, ruled New York. The accusations started with Smartmatic, a prominent voting technology company, which claims that Fox News has been spreading false claims portraying the said company’s role in the 2020 U.S. Presidential Election through election rigging.
Earlier, Smartmatic had filed a lawsuit against Fox News and its parent, Fox Corp., alleging that they were broadcasting defamatory statements that indicated that the company was involved in a conspiracy to change the result of the election. The company charges that Fox News, along with its hosts and guests, consistently and falsely uttered statements that elections were rigged with Smartmatic voting machines.
The case got more tense when Fox Corp. tried its best to make the case be dismissed, showing that the actions of the parent company had nothing to do with its subsidiary; however, New York County Supreme Court Justice David Cohen denied the motion, affirming that there was enough showing by Smartmatic that Fox Corp. employees made an active effort in the defamatory statements made through Fox News. This ruling has been considered a major victory for
Smartmatic because it brings it closer to getting a trial in 2025.
In her ruling, Judge Cohen said the plaintiffs have contended that Fox employees acted in bad faith; the case would move toward a trial to determine these contentions. The judge’s order effectively opens the path for Smartmatic to continue its suit against Fox Corp. and its network. The decision sends a very powerful reminder that media companies could incur immense legal ramifications for spreading disinformation.
The company argues that Fox News knew about these false and damaging stories regarding Smartmatic but went ahead and aired them as a strategy to push the political narratives against the legitimacy of the election. These lies led to significant reputational damage and lost revenues for the company.
Smartmatic has also raised a claim in damages against Fox News, charging that it lost money because the network made such false claims about it. Attorneys for Smartmatic have presented the argument to the court as the $2.7 billion tally of the spread effects of these false claims, by which they argued that the lying damaged the firm’s contracts as well as their reputation in global markets for electronic voting technology.
Fox Corp. denied the allegations and vowed to fight vigorously against the lawsuit. Insisting that it was only covering newsworthy events affiliated with the election, the company said that such shows were, at worst, clearly under the protection of the First Amendment. “Smartmatic’s damage claims are exaggerated,” Fox’s lawyers said while arguing that the suit was an overreaching and effective move to stifle free speech.
Fox Corp. has also filed counterclaims, arguing that Smartmatic’s lawsuit is intended to limit its ability to report on matters related to the election and political discourse. The company argues that the First Amendment shields its coverage of public affairs, regardless of whether the claims made by its personalities were true.
The case between Smartmatic and Fox Corp. remains in court. It is important to note that this is not the first case Fox has had in relation to its coverage of the 2020 election. Another company, Dominion Voting Systems, which also sells voting technology, filed a defamation case against Fox News; it settled the case for $787.5 million. The settlement was achieved just days before the scheduled commencement of the trial in 2023.
The case against Smartmatic is still pending, and with a possible trial date in 2025, the legal battle could have significant consequences for media companies, their liability in reporting election news, and the limits of First Amendment protections. The decision in this case could significantly affect how media companies cover elections going forward.
As both sides are getting ready for a long, combative trial, the attention of the public will be keenly focused on this high-profile defamation case. Not only would it address issues surrounding misinformation and media responsibility but would also delve into the roles that corporate entities play in fashioning the story of significant national events.
Fox Corp. has indicated it is prepared to defend the lawsuit, with a company spokesperson stating the company will be prepared to defend its actions and argue that the lawsuit is an attempt to suppress free speech. “We will be ready to defend this case surrounding extremely newsworthy events when it goes to trial, likely in 2025,” the spokesperson said.
Though it may take years to resolve, this case reminds one of the rising scrutiny that media houses are receiving after the 2020 elections, as well as the aftermath of spreading misinformation. Smartmatic and Fox Corp. are bracing themselves for what might become a defining court battle over defamation and the laws surrounding the press in the United States.
