Fox News’ last-minute decision to pay nearly $800 million to avoid a trial over accusations of defaming Dominion Voting System by broadcasting false claims that the 2020 presidential election was stolen is paying off.
A New York State Supreme Court judge, in an order issued Wednesday, ruled that Smartmatic must face countersuits from Fox News that accuse the voting machine company of attempting to suppress the network’s speech by filing a lawsuit. for 2.7 billion dollars. The court based its reasoning, in part, on the absence of a verdict concluding that Fox News defamed Dominion Voting Systems.
“There remained an triable issue of fact for trial in that action as to whether defendants acted with actual malice, which is an element plaintiffs must also prove here,” the order said.
But in a victory for Smartmatic, New York Chief Justice David Cohen declined to dismiss its lawsuit against Fox. He found that the company “sufficiently alleged” that the network’s employees “played an affirmative role in publishing the defamation in question.”
“Further, plaintiffs have sufficiently alleged that employees of the Corporation acted with malice by knowingly and willfully publishing false stories about plaintiffs to benefit the financial interests of the Corporation,” Cohen wrote.
Despite a $788 million settlement to resolve a similar lawsuit brought by Dominion Voting Systems, Fox continues to face mounting legal problems over its broadcast of far-right conspiracy theories that the 2020 election was stolen with the help of companies. of voting technology. Last year, Fox Corp.’s board of directors was sued for allegedly adopting a business model focused on seeking profits by intentionally spreading falsehoods and disregarding the risk of exposing itself to defamation lawsuits.
The dispute centers on accusations that Fox, in an attempt to boost ratings, capitalized on former President Donald Trump’s popularity by inventing a narrative that Smartmatic unfairly caused him to lose the election.
The defamatory statements at issue in the case: Smartmatic is a Venezuelan company under the control of corrupt dictators from socialist and communist countries; its electoral technology was used in six swing states with close results; its software was designed to “manipulate” elections and it did so by changing votes; and that the company had been banned from participating in previous elections in the United States.
After the court in 2022 refused to dismiss the lawsuit, Fox filed a countersuit under a New York law that allowed early dismissal of complaints aimed at curbing free speech. He argued that the request for more than $2.7 billion is overstated and intended to stifle his First Amendment rights.
While the judge determined that Smartmatic’s lawsuit has a “substantial basis in law,” he concluded that the company failed to establish that there is a “binding determination” that its claims are valid.
“Defendants’ argument here is that Plaintiffs’ alleged damages are so mitigated by their actual loss of profits that they were alleged and/or sought to curb Defendants’ free speech rights,” the order states. “That argument has not yet been tried in any court.”
Even if the court’s decision in favor of Dominion on summary judgment applies to this case, which it clarified that it does not, Cohen said there was still an “actionable question of fact” about whether Fox acted with actual malice, an element of defamation. That Smartmatic will also have to prove in its lawsuit.
The court order issued Wednesday featured claims from both sides. In refusing to dismiss the lawsuit against Fox, Cohen pointed to allegations against executives accused of participating in the alleged scheme, including former President Rupert Murdoch and his successor, Lachlan Murdoch. The Murdochs were alleged to have full editorial control and decision-making authority over the network, with authority to make corrections or retractions.