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- A New York state appellate court has ruled that the defamation case against Fox News, brought by voting technology company Smartmatic, can proceed.
- The case alleges that Fox News and its parent company, Fox Corporation, defamed Smartmatic by spreading false claims about election fraud in the 2020 presidential election.
- The court denied Fox Corporation’s motion to dismiss the defamation claim, finding sufficient evidence to support direct liability.
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Quick Brief
2-Minute Digest
Essential Context
Smartmatic USA Corp. has been pursuing a defamation lawsuit against Fox News and its parent company, Fox Corporation, over claims made during the 2020 presidential election. The lawsuit contends that Fox News and its hosts, along with guest campaign lawyers, knowingly spread false information about Smartmatic’s role in the election, damaging the company’s reputation.
Core Players
- Smartmatic USA Corp. – Voting technology company
- Fox News Network – News channel owned by Fox Corporation
- Fox Corporation – Parent company of Fox News
- Donald Trump – Former president, whose campaign lawyers made the alleged defamatory statements
Key Numbers
- 2020: Year of the presidential election in question
- $2.7 billion: Damages sought by Smartmatic in the lawsuit
- Jan. 10, 2025: Date of the appellate court ruling allowing the case to proceed
- Jan. 24, 2024: Date of the lower court’s decision that was appealed
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The Catalyst
The defamation case was triggered by broadcasts on Fox News where guest campaign lawyers for Donald Trump’s campaign made statements alleging that Smartmatic was involved in election fraud. Smartmatic argues these claims were knowingly false and made with reckless disregard for the truth.
The court’s decision to allow the case to proceed is a significant development, as it indicates that the allegations against Fox News and Fox Corporation have sufficient merit to go to trial.
Inside Forces
The internal dynamics at Fox News and Fox Corporation are critical to the case. Smartmatic’s first amended complaint alleges that Fox Corporation actively participated in and directed the disinformation campaign, which is a key factor in establishing direct liability.
The court found that the allegations of Fox Corporation’s active involvement in Fox News’s daily operations during the relevant period were sufficient to support the defamation claim.
Power Dynamics
The relationship between Fox News, its parent company Fox Corporation, and the guest campaign lawyers is central to the case. The court rejected Fox Corporation’s argument that it could not be held liable simply because it owns Fox News, instead finding that the active role alleged by Smartmatic could establish direct liability.
This ruling highlights the complexities of corporate liability in defamation cases, especially when the parent company is accused of influencing the content of its subsidiary.
Outside Impact
The broader implications of this case extend beyond Smartmatic and Fox News. It sets a precedent for how media companies and their parent corporations can be held accountable for spreading false information.
The ruling may also have implications for other defamation cases involving media outlets and their corporate structures.
Future Forces
The trial will focus on whether Fox News and its hosts knowingly spread false claims and whether Fox Corporation was involved in these actions. If Smartmatic wins, it could lead to significant financial damages and a reputational blow to Fox News and Fox Corporation.
Key areas to watch include the presentation of evidence regarding the knowledge and intent of the defendants and the extent of Fox Corporation’s involvement in the alleged defamation.
Data Points
- 2023: Smartmatic files the first amended complaint against Fox News and Fox Corporation.
- Jan. 24, 2024: Lower court denies Fox Corporation’s motion to dismiss the defamation claim.
- Jan. 10, 2025: Appellate court affirms the lower court’s decision, allowing the case to proceed.
- $2.7 billion: The amount Smartmatic is seeking in damages.
The progression of this defamation case underscores the ongoing tensions between media organizations and the companies they report on, particularly in the context of high-stakes political events. As the trial approaches, it will be crucial to observe how the court navigates the complex issues of corporate liability and the spread of misinformation.
