Fox to pay $US787m to settle Dominion’s defamation lawsuit

Fox News and Dominion Voting Systems reach a $US787m deal, averting a trial on the voting-machine company’s claim it was defamed by broadcasts after the 2020 presidential election.

Lawyer for Fox News Daniel Webb leaves the Leonard Williams Justice Centre in Wilmington, Delaware.

Fox News parent Fox Corporation agreed to pay $US787.5 million ($A1.17bn) to settle its closely watched legal battle with Dominion Voting Systems, averting a trial on the voting-machine company’s allegations that it was defamed by network broadcasts after the 2020 presidential election.

Dominion alleged that Fox hosts and guests amplified false claims that its voting technology helped rig the election for Joe Biden. The company sought $US1.6 billion in damages. Fox argued that it was covering newsworthy claims by associates of then-president Donald Trump and that its broadcasts should be protected by the First Amendment.

Fox in a statement said the settlement reflected its “continued commitment to the highest journalistic standards. We are hopeful that our decision to resolve this dispute with Dominion amicably, instead of the acrimony of a divisive trial, allows the country to move forward from these issues.” Dominion lawyers provided the settlement amount to reporters outside of a Delaware courthouse. Fox declined to comment on the specific dollar figure.

“Today I was reminded of the hell Dominion and their employees went through,” said Dominion attorney Stephen Shackelford. “They deserved money and accountability, and we got that from Fox.”

The settlement ends a two-year legal battle that has threatened Fox News and cast an unflattering spotlight on its inner workings, especially during the aftermath of the 2020 presidential election. If it had gone to trial, the case was set to test the contours of modern media law.

The Wall Street Journal reported Sunday that Fox was making a push to settle the case. Superior Court Judge Eric Davis had delayed the start of the trial by a day this week, without providing details, and opening statements scheduled for Tuesday afternoon were delayed while the parties worked toward a deal.

Defamation cases rarely go to trial. Plaintiffs must meet a high bar to prove their claims, showing that a defendant knowingly published falsehoods or showed a reckless disregard for the truth.

Dominion Voting Systems CEO John Poulos second left, lawyers Justin Nelson, third left, Davida Brook, third right, and Stephen Shackelford, right, speak to the press after a settlement was been reached outside the Leonard Williams Justice Center where Dominion was suing Fox News for defamation.

Dominion said it met that standard, pointing to internal Fox communications that showed top executives and hosts were deeply skeptical of election-fraud claims, even as Fox continued to air them. Some of the communications also showed that company executives were concerned about alienating Trump supporters who were a core part of the Fox News audience.

Fox has said Dominion cherry-picked internal network communications out of context. The network, which sought to portray its coverage as within the mainstream of media practices, has said the people responsible for its broadcasts didn’t knowingly air false claims. It also argued that Dominion’s claims for damages were wildly inflated.

Both sides faced risks from moving forward with a trial. Several high-profile Fox figures could have testified, including hosts Tucker Carlson, Sean Hannity and Maria Bartiromo, as well as Rupert Murdoch, chair of Fox News parent Fox Corporation. Fox lawyers previously sought to keep Mr Murdoch from having to appear in person, but Judge Davis had said he would require him to appear as a witness if Dominion formally requested his testimony at trial.

Dominion faced its own challenges. Some legal experts said the company had a strong case that it was defamed, but could have faced a tougher time convincing a jury to award such a large amount of damages. The company had argued that it suffered significant financial harm because of Fox’s election broadcasts, saying it lost contracts and had more difficulty engaging with elected officials and investors.

Fox faces a separate $US2.7 billion lawsuit from Smartmatic USA, a voting-machine company making similar claims. A judge in that case recently allowed it to move forward. Fox has denied Smartmatic’s allegations.

Fox had just over $US4 billion in cash when it last reported quarterly earnings. Wall Street analysts have said any substantial damages payments or settlements could limit Fox’s flexibility to make investments or engage in share buybacks.

Doug Arthur, an analyst at Huber Research, said the settlement total was higher than close observers of the case expected. “This is a shocking number given the size of Dominion,” Mr Arthur said. Though Fox has the cash on hand to pay it, “nobody can make light of an $US800 million payout”, he said.

Fox Corporation shares common ownership with News Corp, parent of Wall Street Journal publisher Dow Jones & Company.

The Wall Street Journal