Fox News parent company Fox Corp. agreed to pay $787.5 million to settle its closely watched legal battle with Dominion Voting Systems, averting a trial on the voting-machine company’s claims that network broadcasts defamed it after the 2020 presidential election.
Dominion claimed that Fox hosts and guests spread false claims that its voting technology helped Joe Biden win the election. The company sought $1.6 billion in compensation. Fox contended that it was covering newsworthy claims made by associates of then-President Donald Trump and that its broadcasts were protected by the First Amendment.
In a statement, Fox stated that the settlement demonstrated its “continued commitment to the highest journalistic standards.” We hope that our decision to settle this dispute with Dominion amicably, rather than through a divisive trial, will allow the country to move on from these issues.”
Lawyers for Dominion provided the settlement amount to reporters outside a Delaware courthouse. Fox declined to comment on the dollar amount.
“Today I was reminded of the hell Dominion and their employees went through,” Dominion lawyer Stephen Shackelford said. “They deserved money and accountability, and that’s what we got from Fox.”
The agreement brings to an end a two-year legal battle that threatened Fox News and shone an unflattering light on its inner workings, particularly in the aftermath of the 2020 presidential election. If the case had gone to trial, it would have put the contours of modern media law to the test.
According to the Wall Street Journal, Fox was attempting to settle the case on Sunday. 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 had been postponed while the parties worked on a settlement.
Defamation cases are rarely tried in court. To prove their claims, plaintiffs must demonstrate that a defendant knowingly published falsehoods or acted recklessly with regard to the truth.
Dominion claimed to have met that standard, citing internal Fox communications showing top executives and hosts were skeptical of election-fraud claims even as Fox continued to air them. Some of the communications also revealed that Fox News executives were concerned about alienating Trump supporters, who made up a sizable portion of the audience.
Dominion, according to Fox, cherry-picked internal network communications out of context. The network, which sought to portray its coverage as mainstream media practice, has stated that the people in charge of its broadcasts did not knowingly air false claims. It also claimed that Dominion’s claims for damages were exaggerated.
Moving forward with a trial entailed risks for both parties. Several high-profile Fox figures, including hosts Tucker Carlson, Sean Hannity, and Maria Bartiromo, as well as Rupert Murdoch, chairman of Fox News parent company Fox Corp., could have testified. Fox lawyers had previously sought to keep Mr. Murdoch from having to appear in person, but Judge Davis had stated that if Dominion formally requested his testimony at trial, he would require him to do so.
Dominion faced its own set of difficulties. According to some legal experts, the company had a strong case that it was defamed, but it may have had a more difficult time convincing a jury to award such a large amount of damages. The company claimed that Fox’s election broadcasts caused significant financial harm, claiming that it lost contracts and had more difficulty engaging with elected officials and investors.
Smartmatic USA, a voting-machine company, has filed a separate $2.7 billion lawsuit against Fox. A judge recently allowed that case to proceed. Smartmatic’s allegations have been denied by Fox.
When Fox last reported quarterly earnings, it had slightly more than $4 billion in cash. According to Wall Street analysts, any significant damages payments or settlements could limit Fox’s ability to make investments or engage in share buybacks.