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In a key court hearing on Tuesday, a lawyer for the voting technology company Smartmatic argued that top leaders at Fox News, including Rupert and Lachlan Murdoch, authorized a deliberate plan to embrace baseless claims of voting fraud championed by Donald Trump.

“Their core viewers, their bread and butter, deserted them,” declared J Erik Connolly, Smartmatic's lawyer. “So what do they do? They return back to what they know best: they return back to disinformation, political propaganda and xenophobia. The election narrative and the fraud allegations were the perfect tool for them to get back onto their core messaging.”

A Multi-Billion Dollar Defamation Case Hangs in the Balance

During oral arguments, both parties pleaded with the New York state supreme court judge David B Cohen to decide on critical elements of Smartmatic's $2.7 billion defamation lawsuit before a possible trial next year. The company argues that Fox leaders devised a plan to “shift” to Trump's claims to recapture angry viewers.

The Network's Strong Rebuttal

A lawyer for Fox News, representing the network, strongly contested these claims. “No disinformation campaign was authorized,” he stated. “It is total bunk. It is not supported by the record. It is nonsense. It is made up by lawyers on the other side.”

He further asserted that the Murdochs, who ultimately controlled the network, “issued no directives to cover Smartmatic or the fraud claims.”

The Core Challenge: Proving “Knowing Falsity”

For Smartmatic to prevail, the company will have to demonstrate that important personnel at Fox News knew the fraud claims were false but permitted them to be broadcast regardless. Through legal motions, Smartmatic has pointed to internal communications showing hosts like Jeanine Pirro and Maria Bartiromo expressing doubt about the claims while also expressing a desire to help Trump.

Allen, Fox's lawyer argued that Smartmatic has “grossly exaggerated” its worth and the projected damages from the broadcasts. Fox contends its hosts were merely reporting on newsworthy claims from the president's associates, not promoting them.

“This lawsuit really isn't about Fox's reporting of the 2020 election,” said Allen. “It's about Smartmatic's attempt to capitalize on comments made by the president's lawyers to rescue its financial livelihood.”

A Previous Case Is Highly Relevant

Smartmatic's case strongly resemble the successful legal action brought by Dominion Voting Systems against Fox. In that case, a judge's pre-trial rulings were decisive, finding that Fox's statements were false and inherently damaging.

That legal decision was later cited as a major reason in Fox's decision to resolve with Dominion for $787.5 million. A former Fox legal officer noted that the judge's pre-trial rulings had “severely limited” the company's ability to defend itself at trial.

Judge Cohen's Stance

The presiding judge offered few hints of his leaning but told Smartmatic's lawyer that proving “knowledge of falsity” for a pre-trial ruling would be a “difficult task.” He stated he intended to examine all pertinent broadcasts before making a decision.

“I think I have more than enough information, evidence, briefings, charts, charts and all I need to reach a verdict,” he told the two sides in the case.