A New York appellate court has ruled that Smartmatic, the voting machine company, can proceed with its $2.7 billion defamation lawsuit against Fox Corp. The suit stems from allegations that Fox News aired false claims and “election conspiracy theories” related to the company’s involvement in the 2020 presidential election. The court’s decision follows Fox’s appeal of a lower court ruling that denied its motion to dismiss the case.
Smartmatic filed the defamation suit in 2021, accusing Fox Corp. executives, including Rupert Murdoch and his son Lachlan Murdoch, of allowing Fox News to spread false narratives about the company rigging the election. The company claims that Fox News knowingly broadcasted misleading information about its voting machines, which allegedly led to significant reputational harm. The lawsuit targets not only Fox Corp. but also individual Fox News personalities, such as Lou Dobbs, Maria Bartiromo, Jeanine Pirro, as well as figures like Rudy Giuliani and Sidney Powell, who were involved in spreading the conspiracy theories.
The court’s decision mirrors the earlier ruling in a similar case brought by Dominion Voting Systems, another company that sued Fox for defamation over its 2020 election coverage. In that case, Dominion reached a settlement with Fox for $787.5 million. The appellate court noted that the allegations in Smartmatic’s case were similar to those in Dominion’s lawsuit and that they were sufficient to proceed with the defamation claim under New York law. The court emphasized that the allegations demonstrated Fox Corp.’s active role in promoting false information and its direct liability for the defamatory statements made on Fox News.
However, the court also found that Smartmatic’s claims of vicarious liability, which would hold Fox Corp. responsible for the actions of its subsidiaries, were not viable. The court ruled that Smartmatic failed to prove that Fox Corp. exercised total control over Fox News in a way that would justify vicarious liability. This part of the case was dismissed, but the rest of the defamation claims were allowed to proceed.
The ruling is a significant development in the ongoing legal battles involving Fox News and voting machine companies. While Dominion’s case was settled, Smartmatic is pressing forward with its suit, seeking damages for the harm caused by the false election claims. Smartmatic’s legal team has expressed confidence in their case, with attorney Erik Connolly stating that Fox’s attempt to have the case dismissed was unsuccessful and that the company will now be required to answer for its actions.
Fox, on the other hand, has indicated that it is prepared to defend itself against the allegations. The company maintains that the case is based on implausible claims and that Smartmatic’s damages are exaggerated. Fox also argues that the lawsuit threatens to undermine First Amendment rights by chilling free speech, particularly in relation to the coverage of newsworthy events.
The case is set to go to trial, where both sides will present their evidence. As the litigation unfolds, the outcome could have significant implications for defamation law, media coverage of political events, and the ongoing debate over election integrity in the United States.
