Fox Corp (FOXA.O), the parent company of Fox News, failed to dismiss a $2.7 billion defamation lawsuit by electronic voting company Smartmatic over its 2020 election coverage. A New York appeals court ruled Thursday that Smartmatic adequately alleged Fox Corp’s direct involvement in spreading false claims that its technology helped rig the election for Joe Biden against Donald Trump.
The five-judge panel in Manhattan said Fox Corp could be held directly liable for directing on-air talent in a disinformation campaign and actively shaping the network’s coverage. However, the court noted Smartmatic did not prove Fox Corp had “wholly dominated” Fox News Network, limiting potential liability on those grounds.
Fox Corp responded by calling Smartmatic’s damages claims “implausible” and aimed at suppressing First Amendment freedoms. “We will defend this case surrounding newsworthy events at trial,” the company stated.
Smartmatic, which provided technology for Los Angeles County in the 2020 election, accused Fox of broadcasting lies to retain Trump supporters and prevent them from switching to rival networks like Newsmax or One America News. Smartmatic attorney J. Erik Connolly stated Fox Corp “must now answer for its actions at trial.”
This case follows Fox’s $787.5 million settlement in April 2023 with Dominion Voting Systems, which filed a similar defamation lawsuit over election-related falsehoods. Smartmatic’s lawsuit also names former Fox hosts Maria Bartiromo and the estate of Lou Dobbs as defendants.
Smartmatic maintains its offices in London and Boca Raton, Florida.
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