Fox Corp, the parent company of Fox News Network, will have to face a defamation lawsuit filed by electronic voting systems provider Smartmatic. The lawsuit, valued at $2.7 billion, stems from claims made during Fox News’ coverage of the 2020 U.S. presidential election.
On Thursday, a five-judge panel of the Appellate Division in Manhattan ruled that Smartmatic had presented sufficient evidence to hold Fox Corp directly liable for defamatory statements made on-air, which suggested that Smartmatic played a role in rigging the 2020 election to favor Joe Biden over Donald Trump.
The court determined that Smartmatic had adequately alleged that Fox Corporation was involved in directing its on-air talent to spread false information and played an active role in promoting these misleading claims. However, the court also noted that Smartmatic had not provided sufficient evidence to suggest that Fox Corp “wholly dominated” Fox News, which would have made the parent company liable for defamation on that basis.
Fox Corp responded by asserting that it would vigorously defend itself at trial, claiming that the damages sought by Smartmatic were exaggerated and intended to suppress First Amendment rights. “We will be ready to defend this case surrounding extremely newsworthy events when it goes to trial,” the company stated.
Smartmatic, a company that only provided technology to Los Angeles County during the election, has accused Fox of broadcasting false claims about its technology to increase ratings and prevent Trump supporters from switching to competing right-wing networks like Newsmax and One America News.
The lawsuit is part of a broader legal battle over the coverage of the 2020 election. In April 2023, Fox settled a similar defamation case with Dominion Voting Systems for $787.5 million. Other defendants in the Smartmatic case include Fox News hosts Maria Bartiromo and the late Lou Dobbs.
The case, titled Smartmatic USA Corp et al v. Fox Corp et al, is being heard in the New York State Supreme Court, Appellate Division, 1st Department, under case number 2024-01388.
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