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    Fox Settles Dominion Suit, but Smartmatic Case and Others Loom

    Another election technology company, Smartmatic, is suing news outlets, including Fox, over false claims of election fraud, and Dominion has other cases pending.On Tuesday, Fox News hastily agreed to pay $787.5 million to resolve a defamation suit filed by Dominion Voting Systems — among the largest settlements ever in a defamation case — just hours after the jury for the trial was selected. In addition to the whopping financial settlement, Fox conceded that “certain claims” it had made about Dominion were false.In settling with Dominion, the network avoided the possible embarrassment of a trial that could have exposed its inner workings. Rupert Murdoch, the 92-year-old Fox News founder, and the Fox host Tucker Carlson were potential witnesses.Dominion sued the cable news network two years ago, after it aired stories falsely claiming that Dominion’s voting machines were susceptible to hacking and had flipped votes to Joseph R. Biden Jr. that had been cast for Donald J. Trump, who was president.But the settlement with Dominion is not the only legal action that some news outlets are facing after making bogus claims about the 2020 elections.Dominion v. NewsmaxNewsmax apologized in 2021 for spreading false claims that a Dominion employee rigged voting machines.Callaghan O’Hare/ReutersIn 2021, the right-wing news outlet Newsmax formally apologized for spreading false allegations that an employee of Dominion had rigged voting machines. In a statement on its website, Newsmax said it had found “no evidence” that the Dominion employee, Eric Coomer, had manipulated voting machines in an effort to sabotage Mr. Trump’s re-election bid.“On behalf of Newsmax, we would like to apologize for any harm that our reporting of the allegations against Dr. Coomer may have caused to Dr. Coomer and his family,” the statement said.Dominion also sued Mike Lindell, the chief executive of MyPillow and an outspoken supporter of the former president, and two of Mr. Trump’s lawyers, Sidney Powell and Rudy W. Giuliani, for their baseless claims about election fraud. In 2021, a federal judge refused to throw out the suits against them. And in October, the Supreme Court declined to consider Mr. Lindell’s bid to fend off his suit. This month, he told The New York Times, “I will never back down, ever, ever, ever.” The lawsuits are ongoing.Smartmatic v. Fox NewsIn 2021, Fox News was also sued by Smartmatic, which provided voting technology in Los Angeles County for the 2020 election. In its complaint, Smartmatic wrote, “Fox joined the conspiracy to defame and disparage Smartmatic and its election technology and software,” adding, “The story led a mob to attack the U.S. Capitol.” The suit, filed in New York State Supreme Court, seeks at least $2.7 billion in damages.In February, a New York appeals court denied Fox’s request to dismiss the case, and a New York judge said last month that the case could proceed. A trial date has not been set.“We will be ready to defend this case surrounding extremely newsworthy events when it goes to trial, likely in 2025,” Fox News said in a statement on Wednesday.Smartmatic v. NewsmaxSmartmatic also brought defamation litigation against Newsmax, accusing it of spreading falsehoods about the company. Judge Eric M. Davis, who was also assigned to the Fox-Dominion trial, will preside. In February, Newsmax lost its bid to end the litigation, and Judge Davis let the case move forward.Smartmatic v. One America NewsThe headquarters of One America News in San Diego.The New York TimesIn 2021, Smartmatic also sued One America News Network, accusing the news organization of airing disinformation about the 2020 election even after the company warned it to stop. In June, a judge denied a request to dismiss the lawsuit.Lou DobbsThis month — days before jury selection began for the Dominion case — Fox News and Lou Dobbs, a former longtime Fox Business host and loyal Trump supporter, settled a defamation case with Majed Khalil, a Venezuelan businessman. Mr. Dobbs and Ms. Powell, a regular guest on Fox News, falsely claimed on the air and in related Twitter posts that Mr. Khalil had been part of a conspiracy to flip votes. One of the tweets said he was “the effective ‘COO’ of the election project.” Fox canceled Mr. Dobbs’s show in February 2021. More

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    Analysis: Fox News’s $787.5 Million Settlement Is the Cost of Airing a Lie

    Fox News’s late-stage agreement with Dominion Voting Systems came with a rare acknowledgment of broadcasting false claims by the conservative media powerhouse.In settling with Dominion Voting Systems, Fox News has avoided an excruciating, drawn-out trial in which its founding chief, Rupert Murdoch, its top managers and its biggest stars would have had to face hostile grilling on an embarrassing question: Why did they allow a virulent and defamatory conspiracy theory about the 2020 election to spread across the network when so many of them knew it to be false?But the $787.5 million settlement agreement — among the largest defamation settlements in history — and Fox’s courthouse statement recognizing that the court had found “certain claims about Dominion” aired on its programming “to be false” — at the very least amount to a rare, high-profile acknowledgment of informational wrongdoing by a powerhouse in conservative media and America’s most popular cable network.“Money is accountability,” Stephen Shackelford, a Dominion lawyer, said outside the courthouse, “and we got that today from Fox.”During a news conference, a lawyer for Dominion Voting Systems said, “lies have consequences.”Pete Marovich for The New York TimesThe terms of the agreement, which was abruptly announced just before lawyers were expected to make opening statements, did not require Fox to apologize for any wrongdoing in its own programming — a point that Dominion was said to have been pressing for.Shortly after the agreement was reached, Fox said it was “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.”The settlement carries an implicit plea of “no contest” to several pretrial findings from the presiding judge in the case, Eric M. Davis, that cast Fox’s programming in exceptionally harsh light. In one of those findings, the judge sided with Dominion in its assertion that Fox could not claim that its airing of the conspiracy theory — generally relating to the false claim that its machines “switched” Trump votes into Biden votes — fell under a legally protected status of “news gathering” that can shield news organizations when facts are disputed. The judge wrote, “the evidence does not support that FNN conducted good-faith, disinterested reporting.”In another finding, the judge wrote that the “evidence developed in this civil proceeding demonstrates that is CRYSTAL clear that none of the statements relating to Dominion about the 2020 election are true.”Through those findings, the judge seriously limited Fox’s ability to argue that it was acting as a news network pursuing the claims of a newsmaker, in this case, the president of the United States, who was the lead clarion for the false Dominion narrative.In those heady days before the first day of trial, Fox had been indicating that if it were to lose at trial, it would work up an appeal that would, at least partly, argue with those judicial rulings. Now they stand undisputed. By the end of the day on Tuesday, it was clear that Fox’s lawyers were engaged in an urgent calculus to take the financial hit rather than risk losing at trial. As so many legal experts before the trial had argued, Dominion had managed to collect an unusual amount of internal documentation from Fox showing that many inside the company knew the Dominion election conspiracy theory was pure fantasy. That extended to the network’s highest ranks — right up to Mr. Murdoch himself.Rupert Murdoch and his lieutenants could have faced a drawn-out trial that would have forced them to acknowledge why they broadcast conspiratorial claims that knew to be false.Mary Altaffer/Associated PressThat evidence appeared to bring Dominion close to the legal threshold in defamation cases known as “actual malice” — established when defamatory statements are “made with knowledge of its falsity or with reckless disregard of whether it was true or not.” (That bar, however, is not always easy to meet, and there are no guarantees in front of a jury.)“Dominion Voting had elicited much critical evidence that Fox had acted with actual malice or reckless disregard for the truth, which it could have proved to a jury, so the only question remaining would have been damages,” said Carl Tobias, a law professor at the University of Richmond. “Trial of the case also might have undermined the reputation of Fox when the evidence was presented in open court.”It was less surprising that Fox settled than that it did so at such a late stage on Tuesday. A trial would have seen Fox News personnel and Mr. Murdoch parrying with lawyers over the knowledge of falsity they held and why they did not take any action to stop it. The answers would have further unmasked the internal modus operandi of an organization that has long guarded its internal operations.The one question that only time will answer is whether the settlement was enough to cause Fox News to change the way it handles such incendiary and defamatory conspiracy content. The amount is huge — $787.5 million. Fox News certainly doesn’t want to see a similar settlement anytime soon as other legal cases loom, notably a $2.7 billion suit from another election technology company, Smartmatic.But Fox did manage to escape Dominion’s goal of an on-air admission or apology, meaning it did not have to force either on its audience, which did not hear much about the case on Fox’s shows to begin with.“It’s hard to say how damaging a decision against Fox would have been for the company beyond the financial cost of the verdict because their audience is very loyal and bought into the polarized perspective their opinion hosts present,” Michelle Simpson Tuegel, a trial lawyer, said in a statement. “But the reputational harm of having executives, including Chairman Rupert Murdoch, and hosts take the stand seems to have moved the parties towards a resolution.” More

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    Why Fox News Had to Settle With Dominion

    WILMINGTON, Del. — It is deeply disappointing that Fox News settled the defamation lawsuit brought by Dominion Voting Systems before Rupert Murdoch and his roster of celebrity propagandists had to testify. But it is not surprising. Fox News, after all, had no viable defense.On Tuesday, I arrived at Superior Court here at 7 a.m. to secure a seat for what I, like many others, hoped would be an epic trial about the falsehoods Fox aired after the 2020 election, when it accused Dominion and the voting technology company Smartmatic of perpetrating heinous voter fraud. Jury selection took all morning, and opening statements were scheduled for the afternoon.More than anything, I was curious about what Fox’s lawyers would say, because there seemed so little that they could say. Part of Fox’s sinister on-air brilliance is the way it encases its audience in a comprehensive alternative reality. But now, for once, the network would be forced to account for itself outside the right-wing bubble. How it would possibly do so was a matter of great suspense.Already, Eric Davis, the judge in the case, had ruled in Dominion’s favor on key issues. “The evidence developed in this civil proceeding demonstrates that is CRYSTAL clear that none of the statements relating to Dominion about the 2020 election are true,” he wrote in a March 31 pretrial decision, a rare judicial use of all-caps bold italics. Fox’s statements, he ruled, constituted “defamation per se.”Davis prohibited Fox from arguing that the network was merely reporting on allegations made by Donald Trump and his lawyers, which Fox contended were newsworthy whether or not they were true. So the case would turn not on whether Fox had aired defamatory falsehoods, which Davis determined it had, but on whether, in airing defamatory falsehoods, Fox had displayed “actual malice” — essentially, reckless disregard for the truth.The evidence for such reckless disregard brought to light by Dominion’s lawyers during the discovery phase of the case was already overwhelming, and the trial promised more to come. A filing that Fox’s lawyers made last week demonstrated their predicament. In it, the attorneys laid out some of the points they planned to make in their opening argument, asking for “guidance from the court to ensure that it can make its opening statement without undue interruption and delay.” Those points looked a lot like an attempt by Fox to use a legal backdoor to smuggle in arguments that the judge had already forbidden.“To defend this case, Fox witnesses must be able to testify about the reasons why Fox covered the allegations on the air,” said the filing. “Fox witnesses will all testify that they covered the Dominion-related allegations because the allegations were part of the most newsworthy story of the day.” This, even though Davis had specifically ruled that this argument was invalid because, among other things, “the evidence does not support” the contention that Fox “conducted good-faith, disinterested reporting.”In order to defend Fox from a finding of actual malice, its lawyers seemed set on bringing Fox’s alternative reality into the courtroom, acting as if taking Trump and his attorneys at their word was a perfectly reasonable thing to do. Testimony and documentary evidence, Fox’s lawyers said in the filing, “will show that the president and the lawyers bringing the election fraud lawsuits continuously told Fox that they had evidence to support their claims and that they would be presenting that evidence to courts.” That, in turn, explains why the Fox hosts “did not know that the president’s allegations were false or harbor serious doubts about the truth of the allegations.”In other words, they can’t be blamed for treating the president of the United States as a reliable source.Responding to the filing, Davis refused to give Fox the green light it sought. If the network’s lawyers wanted to make the arguments that they were telegraphing, they would have to take their chances in front of the jury, and risk getting shut down. On Tuesday morning, Davis reminded the parties that they would not be able to make arguments “about things that I’ve ruled inadmissible.” I was waiting to hear what Fox’s lawyers were going to argue instead.But after lunch, the jury didn’t return, and Davis came back to the courtroom only briefly before beckoning some of the lawyers out. The hours ticked by while the journalist-filled audience grew increasingly restless. Courtroom protocol against texting or using the internet gradually collapsed. News broke that the judge had ordered a special master to investigate whether Fox had “complied with their discovery obligations.” (The network had previously been sanctioned for withholding evidence.) Rumors about a settlement buzzed through the room.At 4 p.m., the jury filed back in, and the judge confirmed that the trial was over before it began.Fox is paying Dominion $787.5 million, which appears to be one of the largest defamation settlements in history and is one that constitutes a humiliating admission of fault by the network, even though, as The New York Times’s Jim Rutenberg reported, the deal doesn’t require Fox to apologize. But the public will be deprived of seeing Murdoch, Sean Hannity, Tucker Carlson and several of their colleagues grilled on the stand, forced to reckon with the real world, unable to fall back on the dense lattice of misinformation that typically sustains Fox’s narratives.At least, the public will be deprived for now. Smartmatic is still suing Fox for $2.7 billion, though no trial date has been announced yet. “Dominion’s litigation exposed some of the misconduct and damage caused by Fox’s disinformation campaign,” Smartmatic lawyer J. Erik Connolly said in a statement on Tuesday. “Smartmatic will expose the rest.”I’m not sure I believe it — Fox has just shown the world what it’s willing to pay to avoid the unmasking. But reality isn’t done with Murdoch and the rest of them yet.The Times is committed to publishing a diversity of letters to the editor. We’d like to hear what you think about this or any of our articles. Here are some tips. And here’s our email: letters@nytimes.com.Follow The New York Times Opinion section on Facebook, Twitter (@NYTopinion) and Instagram. More

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    Fox Will Pay $787.5 Million to Settle Dominion Defamation Suit

    The settlement with Dominion Voting Systems was the latest extraordinary twist in a case that exposed the inner workings of the most powerful voice in conservative news.Fox News abruptly agreed on Tuesday to pay $787.5 million to resolve a defamation suit filed by Dominion Voting Systems over the network’s promotion of misinformation about the 2020 election, averting a lengthy and embarrassing trial just as a packed courtroom was seated in anticipation of hearing opening statements.The settlement, one of the largest ever in a defamation case, was the latest extraordinary twist in a case that has been full of remarkable disclosures that exposed the inner workings of the most powerful voice in conservative news.In addition to the huge financial price, Dominion exacted a difficult admission from Fox News, which acknowledged in a statement that “certain claims” it made about Dominion were false.“The truth matters. Lies have consequences,” Justin Nelson, a lawyer for Dominion, said outside Delaware Superior Court on Tuesday.“Lies have consequences,” a lawyer for Dominion Voting Systems said during a news conference.Pete Marovich for The New York TimesNews of the 11th-hour agreement stunned the full courtroom in Wilmington, where the case was being heard. Gasps filled the air when Judge Eric M. Davis told the jury shortly before 4 p.m. that the two parties had resolved the matter. Lawyers for both sides had been preparing to speak to the jury for the first time, microphones clipped to their jacket lapels.The settlement spares Fox a trial that would have gone on for weeks and put many of the company’s most prominent figures — from the media mogul Rupert Murdoch to hosts like Tucker Carlson and Maria Bartiromo — on the stand.The case held the potential to make public a stream of damaging information about how the network told its audience a story of fraud and interference in the 2020 presidential election that many of its own executives and on-screen personalities did not believe. And the network was not forced to apologize — a concession that Dominion lawyers had sought, lawyers involved in the case said.Dominion sued two years ago, after Fox aired false stories claiming that Dominion’s voting machines were susceptible to hacking and had flipped votes from President Donald J. Trump to Joseph R. Biden Jr. On Tuesday, the company expressed a sense of exoneration about the large financial cost that Fox will have to pay. While Dominion’s suit asked for damages of $1.6 billion, almost double the settlement figure, the company will avoid many years of appeals that could have trimmed or eliminated any payout from a trial.“Over two years ago, a torrent of lies swept Dominion and election officials across America into an alternative universe of conspiracy theories causing grievous harm to Dominion and the country,” Mr. Nelson said. “Today’s settlement of $787.5 million represents vindication and accountability.”The case and the expected trial were significant because they raised the prospect for an elusive judgment in the post-Trump era: Very few allies of the former president’s have been held legally accountable for their roles in spreading the falsehoods that undermined confidence in the country’s democratic process and cast Mr. Biden’s victory as illegitimate. Polls show that large numbers of Republicans still believe the 2020 election was tainted.The size of the settlement, experts said, seems to have little precedent. RonNell Andersen Jones, a professor of law at the S.J. Quinney College of Law at the University of Utah, said she believed it was one of the largest settlements in a defamation case ever.“This was unquestionably the strongest defamation case we’ve ever seen against a major media company,” Ms. Andersen Jones said. The case was even more unusual, she added, because media companies typically seek to settle well before so much damaging information about their internal workings is released.A deal came together at the last possible minute, after months of almost no serious discussion between the two sides. As the case proceeded, Dominion divulged extraordinary details about the doubts that Fox employees expressed privately about voter fraud claims, even as they struck a different tone on the air.“Settlement before this trove of evidence became public would of course have been in Fox’s best interest,” Ms. Andersen Jones said. “Waiting until the eve of trial, when the whole nation had a chance to focus on what Fox said internally about Trump, its sources and its own viewers, gave Dominion the extra layer of accountability it was seeking.”It is uncommon for defamation suits to get to trial, in part because the bar for proving “actual malice” — the legal standard that requires plaintiffs to show that defendants knew what they were saying was a lie, or had a reckless disregard for the truth — is so high. It is rarer yet for one to feature the volume of evidence that Dominion had amassed against Fox.In the run-up to trial, Dominion publicly released reams of internal communications among Fox executives, hosts and producers that revealed how the country’s most-watched cable news network set in motion a strategy to win back viewers who had tuned out after Mr. Trump’s loss. The messages tell the story of a frantic scramble inside Fox as it started losing audience share to competitors, like Newsmax, that were more willing to report on and endorse false claims about a plot involving Dominion machines to steal the election from Mr. Trump.Producers referred to pro-Trump guests like Sidney Powell and Rudolph W. Giuliani as “gold” for ratings and acknowledged that the audience didn’t want to hear about subjects like the possibility of a peaceful transition from a Trump administration to a Biden administration.Those communications have shown how employees at Fox expressed serious doubts about and, at times, were scornful of Mr. Trump and his allies as they spread lies about voter fraud, questioning the legitimacy of Mr. Biden’s election. Some at Fox mocked Mr. Trump and his lawyers as “crazy” and under the influence of drugs like L.S.D. and magic mushrooms.Some Fox hosts privately described their colleagues as “reckless” for endorsing Mr. Trump’s false claims, acknowledging that there was “no evidence” to back them up. Yet for weeks, Fox continued to give a platform to election deniers, despite doubts about their credibility. Dominion challenged statements made on multiple programs on multiple nights. Typically, defamation cases involve only a single disputed statement.The trial would have been a spectacle. Mr. Murdoch, whose family controls the Fox media empire, was slated to be one of Dominion’s first witnesses this week. Star anchors including Sean Hannity, Mr. Carlson and Ms. Bartiromo were likely to be called at other points.Even the most blockbuster media trials of the last generation — Ariel Sharon’s suit against Time and Gen. William C. Westmoreland’s against CBS, both in the 1980s — lacked the most explosive elements of this case, which raised weighty questions about the protections the First Amendment affords the media and whether one of the most influential forces in conservative politics would have to pay a price for amplifying misinformation.Both of those cases were settled out of court, too.In recent days, Fox raised questions about Dominion’s claims of damages. On Monday, it disputed Dominion’s worth, pointing to a recent legal filing in which the company lowered part of its request for compensation. Fox lawyers also raised doubts about the harm that Dominion had suffered, saying the company acknowledged that it had turned a profit in recent years.But the potential pitfalls for proceeding with a trial were real for Fox. Some of the revelations from the depositions that Dominion had conducted offered a preview of how damaging a trial could be. Mr. Murdoch acknowledged during his deposition that some Fox hosts had “endorsed” Mr. Trump’s lies, an admission that undercut Fox’s defense that it was merely reporting on — not amplifying — the former president’s claims.After the deposition concluded, the general counsel of Fox Corporation, Viet Dinh, tried to reassure Mr. Murdoch that he had done well.“I’m just going to say it. They didn’t lay a finger on you,” Mr. Dinh said.Mr. Murdoch disagreed, according to a person who witnessed the exchange. He pointed a finger at the lawyer who had questioned him for Dominion, Mr. Nelson, and said, “I think he would strongly disagree with that.”To which Mr. Nelson replied, “Indeed, I do.” More

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    Fox-Dominion Trial Delayed: What to Know About the Company Behind the Lawsuit

    Dominion, which is owned by a New York private equity firm, has accused the news network of spreading false narratives about its election technology.If not for the 2020 election, most people would not have heard of Dominion Voting Systems, an elections technology company that John Poulos started out of his basement in Canada more than two decades ago.But in the days and weeks after the election, former President Donald J. Trump and many of his allies accused the company of perpetrating election fraud. Dominion then filed a slew of defamation lawsuits against public figures and news networks, accusing them of spreading the false narratives and exposing its employees to harassment. The company’s case against Fox News is scheduled to go to trial this week. Judge Eric M. Davis, who is presiding over the case, said in a statement late on Sunday that he was delaying the trial by a day, until Tuesday. He did not cite a reason but said he would make an announcement Monday at 9 a.m.Here is what we know about the company, from its private equity owner in New York to its powerful perch in the nation’s elections industry.Dominion’s Early DaysDominion became one of the largest providers of election technology in the United States by selling, licensing and maintaining products such as its Democracy Suite software and ImageCast voting and tabulation machines. During the 2020 election, the company served 28 states, including many swing states, as well as Puerto Rico. Mr. Poulos, who has degrees in electrical engineering and business, incorporated Dominion in Toronto in 2003 with some friends after a stint in Silicon Valley. His sister was his first investor, followed by his parents and his friends’ parents. (Dominion declined to comment for this article.)The company is named after Canada’s 1920 Dominion Elections Act, which removed barriers to voting that had excluded women and voters of certain racial, religious or economic groups. Mr. Poulos’s business idea was to help people with disabilities, such as paralysis or blindness, cast their ballots as independently as possible while still leaving an auditable paper trail. Dominion incorporated accessible technology like audio readouts and large screens into election machines.The company scored its first American contract in 2009, providing voting technology to dozens of counties in New York. The next year, it moved its headquarters to Denver, where it now has several hundred employees.Private Equity OwnersStaple Street Capital, a private equity firm in New York, is the majority owner of Dominion. Mr. Poulos, Dominion’s chief executive, retains a roughly 12 percent stake. PennantPark Investment, a financial firm based in Miami, is another investor.Fox said in a legal filing that Staple Street paid $38.3 million in 2018 to acquire 76.2 percent of Dominion. At the time, the private equity firm valued the technology vendor at $80 million, or one-twentieth of the $1.6 billion in damages that Dominion had sought from Fox, according to Fox’s filing.Staple Street’s owners, Stephen D. Owens and Hootan Yaghoobzadeh, first worked together in 1998 on buyouts for the Carlyle Group, a private equity giant. (Their résumés also feature stints at Lehman Brothers and Cerberus Capital Management.) The firm’s board of directors includes a former chief executive of Dunkin’ Brands as well as a former chairman of the Federal Communications Commission and ambassador to the European Union.Staple Street declined to comment.On its website, Staple Street says it has $900 million of assets under management — mostly midsize companies such as a flower bulb distributor in New Jersey, an accounting and payroll reporting service popular with restaurant chains, a support organization for dental clinics and, at one point, the theme park operator Six Flags.Fox said in its filing that Mr. Yaghoobzadeh had authorized Dominion’s lawsuit against the network. The lawsuit, Fox said, is meant to generate publicity, deter negative reporting and “unjustly enrich” Staple Street.Fox cited discovery documents that it said showed Dominion “in a solid financial position, maintaining substantial cash, carrying no debt and producing a steady return on investment” to Staple Street. In 2021, Dominion paid full bonuses to its employees and executives and projected $98 million in revenue for 2022, Fox said.Last year, when asked whether he believed that Dominion was a “toxic” company after the 2020 election, Mr. Owens answered, “That’s correct.”A Business in FluxIn its complaint, which it filed in 2021, Dominion accused Fox of broadcasting lies that “deeply damaged” its “once-thriving” business, “one of the fastest-growing technology companies in North America” with a potential value of more than $1 billion.Shasta County, a rural area in Northern California that has become a hotbed for election denial, terminated its Dominion contract in January. Lawmakers in Montgomery County in Pennsylvania renewed a deal with Dominion for $518,052 in February, the same month that officials in Kern County, north of Los Angeles, narrowly approved a three-year, $672,948 contract after hours of heated debate.Dominion’s contracts with local and state governments typically last for several years and range from tens of thousands of dollars to more than $100 million, the company said in its complaint against Fox. The company estimated that misinformation about the company had cost it more than $600 million in profits.In an expert witness report submitted in the case late last year, Mark J. Hosfield, a managing director of the investment bank and advisory firm Stout, wrote that the false narratives had led Dominion to lose $88 million in profits from current and future opportunities. He also wrote that Fox’s coverage had caused the value of Dominion’s equity and debt to drop $920.8 million. Dominion’s renewal rate with clients had historically been 90 percent, he said.Fox has said the $1.6 billion that Dominion is seeking is “a staggering figure that has no factual support” and was “pulled out of thin air.” There has been no evidence of Dominion’s laying off employees, closing offices, defaulting on credit obligations or suffering canceled contracts as a result of Fox’s coverage, the network said.Fox said in other court filings last year that “Dominion’s calculations are riddled with mathematical overstatements” and losses misattributed to damaging news coverage, and that the company had beaten revenue forecasts that it set before the election.“Dominion’s lawsuit is a political crusade in search of a financial windfall, but the real cost would be cherished First Amendment rights,” Fox said in a statement.Dominion, in a statement said: “In the coming weeks, we will prove Fox spread lies causing enormous damage to Dominion. We look forward to trial.”An Important but Mysterious IndustryThe elections technology industry has few major players and offers little public information about its finances. Dominion is most likely the second-largest company of its kind operating in the United States, behind Election Systems & Software in Nebraska, according to Verified Voting, an election security nonprofit.Both companies, along with Hart InterCivic in Texas, have acquired smaller competitors over the past two decades. As of 2016, the three vendors served more than 90 percent of eligible voters in the country, according to a report from the Wharton School at the University of Pennsylvania.Wharton researchers at that point described the election technology business as having “all the aspects of an industry that new investors would want to avoid — a costly regulatory environment, constrained market size, cost-conscious customers, and concentrated and entrenched vendors.”The Brennan Center for Justice estimated last year that replacing outdated voting equipment over the next five years could cost more than $580 million. A group of Democratic lawmakers, including Senator Elizabeth Warren of Massachusetts, sent letters in 2019 to Staple Street and other private equity firms that had invested in election technology companies, voicing concern about industry consolidation and the maintenance of voting machines. In response, Staple Street wrote to Ms. Warren that it spent roughly 10 to 20 percent of its revenue on research and development.Susan C. Beachy More

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    Judge Delays Fox and Dominion Trial by a Day

    Opening statements in the $1.6 billion defamation case against Fox News were set to begin on Monday.A Delaware judge on Monday said that he had delayed by a day the start of a highly anticipated defamation trial over the spread of misinformation in the 2020 presidential election.The postponement of the trial was the latest twist in the case. Late Sunday, Judge Eric M. Davis said the proceedings would continue on Tuesday. He did not give a reason then or in his brief remarks from the bench just after 9 a.m. on Monday.“This does not seem unusual to me,” Judge Davis said, explaining that he had rarely been part of a trial that did not have some kind of delay. “I am continuing the matter until tomorrow.”The case has opened an unprecedented window into the inner workings of the country’s leading conservative news network. In the run-up to trial, Fox has handed over tens of thousands of emails and text messages exchanged among its hosts, producers and executives. Many of them revealed that there was widespread doubt inside the network over former President Donald J. Trump’s false claims that he had been cheated of victory.The case is considered a landmark test of First Amendment protections for the press and has been closely watched by legal and media analysts. Dominion’s voting machines became the focus of pro-Trump conspiracy theories that wrongly implicated the company’s technology in a plot to flip votes from Mr. Trump to President Biden.On Monday, the courtroom was filled with reporters from around the world awaiting word on when they could expect to hear opening statements from both parties and exactly what the delay was about.Boldface names from Fox News — hosts including Tucker Carlson, Sean Hannity and Maria Bartiromo, along with Rupert Murdoch, whose family controls the sprawling Fox media empire — are expected to testify if the case goes to trial.Dominion Voting Systems, an elections technology company, filed the libel lawsuit against Fox in early 2021, claiming that Fox hosts and guests repeatedly uttered lies about its role in a fictitious plot to steal the election despite knowing the claims, which had been pushed by Mr. Trump and his supporters, were not true.Fox has said that it was reporting on newsworthy allegations involving a presidential election and insisted that its broadcasts were protected under the First Amendment as commentary and news. It has also challenged Dominion’s damages claim, arguing that the company vastly overvalued itself and has not suffered the blows to its business that it says.This is a breaking news story. Check back for updates. More

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    Fox News Is on Trial, and So Are Falsehoods About 2020

    A jury in Delaware will be asked to weigh the limits of the First Amendment. Another question in the case is whether the network will pay a financial penalty for disseminating election lies.WILMINGTON, Del. — On Monday, a judge in Delaware Superior Court is expected to swear in the jury in a defamation trial that has little precedent in American law. Fox News, one of the most powerful and profitable media companies, will defend itself against extensive evidence suggesting it told its audience a story of conspiracy and fraud in the 2020 election it knew wasn’t true.The jury will be asked to weigh lofty questions about the limits of the First Amendment and to consider imposing a huge financial penalty against Fox. Some of the most influential names in conservative media — Rupert Murdoch, Sean Hannity, Tucker Carlson — are expected to be called to testify. But there is another fundamental question the case raises: Will there be a price to pay for profiting from the spread of misinformation?Few people have been held legally accountable for their roles in trying to delegitimize President Biden’s victory. Sidney Powell, a lawyer who was one of the biggest purveyors of conspiracy theories about Dominion Voting Systems, the company suing Fox for $1.6 billion, avoided disbarment in Texas after a judge dismissed a complaint against her in February.Jenna Ellis, an attorney who worked with Ms. Powell and the Trump campaign, received a reprimand last month instead of losing her license with the Colorado bar. Donald J. Trump, whose false insistence that he was cheated of victory incited a violent mob on Jan. 6, 2021, is running for president a third time and remains the clear front-runner for the Republican nomination.Political misinformation has become so pervasive in part because, there is little the government can do to stop it.“Lying to American voters is not actually actionable,” said Andrew Weissmann, the former general counsel of the F.B.I. who was a senior member of the special counsel team under Robert S. Mueller that looked into Mr. Trump’s 2016 campaign.It’s a quirk of American law that most lies — even ones that destabilize the nation, told by people with enormous power and reach — can’t be prosecuted. Charges can be brought only in limited circumstances, such as if a business executive lies to shareholders or an individual lies to the F.B.I. Politicians can be charged if they lie about a campaign contribution, which is the essence of the criminal case against Mr. Trump by the Manhattan district attorney’s office.In the Fox News case, the trial is going forward because the law allows companies like Dominion, and people, to seek damages if they can prove their reputations were harmed by lies.The legal bar that a company like Dominion must meet to prove defamation is known as actual malice. And it is extremely difficult to prove because of the Supreme Court’s 1964 decision in New York Times Company v. Sullivan, which held that public officials can claim defamation only if they can prove that the defendants either knew that they were making a false statement or were reckless in deciding to publish the defamatory statement.“There are all sorts of times you can lie with impunity, but here there’s an actual victim,” Mr. Weissmann added. “It’s only because of the serendipity that they actually attacked a company.”Usually, there is great deference among media lawyers and First Amendment scholars toward the defendants in a libel case. They argue that the law is supposed to provide the media with breathing room to make mistakes, even serious ones, as long as they are not intentional.But many legal scholars have said that they believed there was ample evidence to support Dominion’s case, in which they argue they were intentionally harmed by the lies broadcast by Fox, and that they would not only be surprised but disappointed if a jury didn’t find Fox liable for defamation.“If this case goes the wrong way,” said John Culhane, professor of law at Delaware Law School at Widener University, “it’s clear from my perspective that would be a terrible mistake because this is about as strong as a case you’re going to get on defamation.” Mr. Culhane added that a Fox victory would only make it harder to rein in the kind of misinformation that’s rampant in pro-Trump media.“I think it would embolden them even further,” he said.This case has proved to be extraordinary on many levels, not only for its potential to deliver the kind of judgment that has so far eluded prosecutors like Mr. Weissmann, who have spent years pursuing Mr. Trump and his supporters who they believe bent the American democratic system to a breaking point.“Even if this didn’t involve Donald Trump and Fox and the insurrection, this is a unique libel trial, full stop,” said David Logan, a professor of law at Roger Williams School of Law and an expert on defamation. “There’s never been one like this before.”It is extremely rare for defamation cases to reach a jury. Mr. Logan said his research shows a steady decline over the years, with an average of 27 per year in the 1980s but only three in 2017.Some experts like Mr. Logan believe the case’s significance could grow beyond its relevance to the current disinformation-plagued political climate. They see an opportunity for the Supreme Court to eventually take the case as a vehicle to revisit libel law and the “actual malice” standard. The justices have not done that since a 1989 case involving a losing candidate for municipal office in Ohio who successfully sued a newspaper after it published a false story about him a week before the election. The court said that a public figure cannot recover damages unless there was “clear and convincing proof” of actual malice..The actual malice standard has been vital for individual journalists and media outlets who make mistakes — as long as they are honest mistakes. But some scholars like Mr. Logan — as well as two conservative Supreme Court justices, Neil M. Gorsuch and Clarence Thomas — have argued that “actual malice” should be reconsidered as too high a standard. Justice Thomas specifically cited as a reason “the proliferation of falsehoods.”“The nature of this privilege goes to the heart of our democracy, particularly in this case,” said Mr. Logan, whose paper arguing that the courts have made it too difficult for victims of libel to win relief was cited in a dissent by Justice Gorsuch in 2021.Fox lawyers are already preparing for an appeal — a sign they are under no illusion that beating Dominion’s case will be easy. At several recent hearings in front of Judge Eric M. Davis, Fox has been represented by Erin Murphy, an appellate lawyer with experience arguing cases before the Supreme Court.Dominion also apparently considers the possibility of an appeal quite realistic. It had an appellate attorney of its own, Rodney A. Smolla, arguing on its behalf when questions of Fox’s First Amendment defense arose last month — the kind of constitutional questions that federal appellate courts will entertain.The belief that the Supreme Court could eventually hear the Fox-Dominion case is shared by the general counsel of Fox Corporation, Viet Dinh. Mr. Dinh, who is likely to be called as a witness by Dominion during the trial, has told colleagues privately that he believes Fox’s odds at the Supreme Court would be good, — certainly better than in front of a Delaware jury, according to people who know his thinking. The evidence against Fox includes copious amounts of text messages and emails showing that producers, hosts and executives belittled the claims being made on air of hacked voting machines and conspiracy, details that Dominion has said prove the network defamed it.But Fox lawyers and its public relations department have been making the case that its broadcasts were protected under the First Amendment because they encompassed the kind of coverage and commentary that media outlets have a right to do on official events of intense public interest.“A free-flowing, robust American discourse depends on First Amendment protections for the press’ news gathering and reporting,” a network spokeswoman said in a written statement. The statement added that Fox viewers expected the kind of commentary that aired on the network after the election “just as they expect hyperbole, speculation and opinion from a newspaper’s op-ed section.”Judge Davis has overruled Fox on some of its First Amendment claims, limiting its ability to argue certain points at trial, such as its contention that it did not endorse any false statements by the president and his allies but merely repeated them as it would any newsworthy statement.A spokeswoman for Dominion expressed confidence, saying: “In the coming weeks, we will prove Fox spread lies causing enormous damage to Dominion. We look forward to trial.”Inside Fox, from the corporate offices in Los Angeles to the news channel’s Manhattan headquarters, there is little optimism about the case. Several current and former employees said privately that few people at the company would be surprised to see a jury return a judgment against Fox. Judge Davis has expressed considerable skepticism toward Fox in the courtroom. He issued a sanction against Fox last week when Dominion disclosed that the company had not revealed details about Mr. Murdoch’s involvement in Fox News’s affairs, ruling that Dominion had a right to conduct further depositions at Fox’s expense.But he does not have the final say. Twelve men and women from Delaware will ultimately decide the case. And defamation suits so rarely prevail, it’s also reasonable to consider the possibility that Fox does win — and what a 2024 election looks like with an emboldened pro-Trump media. More

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    What Protects Fox News In the Dominion Trial Also Protects Our Democracy

    Fox News, which is defending itself from Dominion Voting Systems’ $1.6 billion lawsuit, is going to trial on Monday in a hole. In an unusual move, the judge has already ruled that on-air statements — those asserting that Dominion’s voting machines played a role in causing Donald Trump to lose the 2020 election — were false. The main task left for the jury is to decide whether Fox made those false statements with what’s known as actual malice.It’s remarkable that Dominion’s suit has gotten this far and may even ultimately prevail, thanks in part to a raft of incredibly damaging Fox emails, text messages and other evidence that show deep internal misgivings about on-air claims about the 2020 election. But proving actual malice is difficult: Dominion must show that Fox News either knew that its reporting was false or entertained serious doubts about the truth of the reporting. This high bar, set by the Supreme Court in 1964, often is insurmountable for plaintiffs.Given the evidence against Fox that already has been made public, it might seem unfair that Dominion continues to face such an uphill battle in this case. But it is a very good thing for our democracy that it is so difficult to prove actual malice.A movement to erode this legal protection has gained steam in recent years, but the main push has not come from Fox critics. Rather, conservatives have characterized the protections as unfairly enabling liberal news outlets to lie. Commentators, politicians, judges and two Supreme Court justices have urged the court to reconsider these protections.The Dominion case demonstrates why this politicization is the wrong course. Overturning nearly six decades of vital First Amendment precedent would not benefit conservatives, liberals or anyone other than those who seek to stifle reporting and criticism with the threat of litigation.Sixty-three years ago, this newspaper ran a full-page advertisement from a civil rights committee that accused Southern officials of mistreating Martin Luther King Jr. and other peaceful protesters. Some statements were untrue. For instance, although the city of Montgomery, Ala., had deployed the police near a local college, the officers did not “ring” the campus, as the ad alleged. L.B. Sullivan, a Montgomery city commissioner who supervised the police, sued The New York Times for defamation, and the all-white jury found against The Times and four Black ministers whose names were on the advertisement and awarded Sullivan $500,000.The Supreme Court in 1964 unanimously overturned that ruling, reasoning that public officials must establish actual malice before recovering defamation damages. Justice William Brennan touted the “profound national commitment to the principle that debate on public issues should be uninhibited, robust, and wide-open, and that it may well include vehement, caustic, and sometimes unpleasantly sharp attacks on government and public officials.” The court later expanded this requirement to public-figure defamation plaintiffs.The merits of New York Times v. Sullivan have long been the subject of academic debate, but its survival was not seriously questioned until 2019, when Justice Clarence Thomas called on the court to revisit the decision. He deemed Sullivan and its progeny “policy-driven decisions masquerading as constitutional law.” Two years later, Justice Neil Gorsuch joined Justice Thomas, arguing that the actual malice rule might enable the spread of falsehoods online and on cable news.As the Supreme Court showed last year when it overturned Roe v. Wade, no precedent is entirely safe from reversal, so any supporters of Sullivan should be quite concerned by two justices calling to revisit the case.Sullivan is increasingly under attack. This month, for instance, a Trump-appointed federal judge in Florida took a swipe at the actual malice standard when applying it to rule in favor of CNN in a defamation lawsuit that the lawyer Alan Dershowitz brought against the network. “Policy-based decisions” such as the actual malice rule are best left to elected legislatures, “not to an unelected judge who may be king or queen for a day (or a lifetime),” Judge Raag Singhal wrote. Judge Laurence Silberman of the U.S. Court of Appeals for the D.C. Circuit cited the media’s “bias against the Republican Party” in his 2021 call to overturn Sullivan. And at a February round table about the news media, Gov. Ron DeSantis of Florida said the precedent enables the media to “smear” politicians.The actual malice rule protects speakers regardless of politics. It protects CNN and The New York Times. It protects Fox News and Newsmax. The rule gives them the flexibility to investigate, report on and criticize the most powerful people and companies without fearing ruinous liability because of an accidental error. It also protects individual speakers on social media.The precedent does not provide media outlets and other speakers with a blank check to knowingly lie. Actual malice is a high bar, but it is not insurmountable. Dominion has already produced emails and other evidence that Fox employees and executives privately entertained serious doubts about many claims about the election. The jury could well conclude that Fox knew of the statements’ falsity or were sufficiently aware of their probable falsity. But Sullivan gives Fox the opportunity to present this defense rather than automatically becoming liable for every error.Judges who argue that the actual malice rule may not be rooted in the First Amendment gloss over the threat to speech posed by using the power of the government — court judgments — to punish speech.Attacks on Sullivan are attacks on the building blocks of democracy, and they should concern everyone who cares about free speech, regardless of political affiliation. We have seen how the powerful have weaponized weaker defamation laws in other countries. In a December report, UNESCO noted that there has been a global increase in civil defamation lawsuits that often aim “to target journalists who publish content that makes public officials or powerful economic actors uncomfortable.” A 2020 report from the Foreign Policy Center observed that since a right-wing populist party rose to power in Poland in 2015, a Polish daily newspaper had received more than 55 legal threats from “powerful state actors,” state-owned companies and people tied to the ruling party.Fearing such an outcome, Matthew Schafer, a First Amendment lawyer (who represented The Times a number of years ago), and I came up with a backup plan: In a recent law review article, we proposed a federal statute that would codify the actual malice rule and other vital free speech and press protections. While courts and state legislatures would be free to impose even stronger protections, our proposal would prevent a sudden erosion of free speech because of a single Supreme Court opinion.Hopefully, such a plan will be unnecessary and judges will come to again recognize the enduring value of Sullivan. The Dominion trial is an opportunity for the nation to witness how this “profound national commitment” protects all speakers. And it will be in the best interests of conservatives to fight to protect Sullivan rather than to tear it down.Jeff Kosseff is a senior legal fellow at The Future of Free Speech Project and the author of the forthcoming book “Liar in a Crowded Theater: Freedom of Speech in a World of Misinformation.”The Times is committed to publishing a diversity of letters to the editor. We’d like to hear what you think about this or any of our articles. Here are some tips. And here’s our email: letters@nytimes.com.Follow The New York Times Opinion section on Facebook, Twitter (@NYTopinion) and Instagram. More