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    Tucker Carlson’s Surprise Exit Stuns People in Donald Trump’s Orbit

    The announcement on Monday that Fox News was parting ways with its top-rated prime-time host, Tucker Carlson, stunned people in Donald J. Trump’s orbit. The former president himself was surprised by the news, according to a person with direct knowledge, and his eldest son, Donald Trump Jr., who is a close friend of Mr. Carlson’s, described the network’s decision as “mind-blowing.”“I think it changes things permanently,” Donald Trump Jr. said on “The Charlie Kirk Show,” adding that Mr. Carlson was “an actual thought leader in conservatism” and a “once-in-a-generation type talent.”The casual news observer would be forgiven for thinking that Mr. Trump and his family no longer had a relationship with Mr. Carlson, given the recent disclosures of the Fox host’s scathing private text messages, which emerged as part of the conservative network’s legal battle against Dominion Voting Systems.In early 2021, as Mr. Trump desperately tried to overturn the 2020 election, Mr. Carlson texted a confidant that he hated the president “passionately.” He also described Mr. Trump as a “demonic force.”When the texts were released in March, Mr. Trump was wounded and called Mr. Carlson to talk about them, according to a person familiar with the outreach. But the two men patched it up quickly. Since then, they have talked regularly, exchanged text messages and appeared to have a closer relationship than at any time before, according to two people close to Mr. Trump who are familiar with their relationship and who did not want to be identified to discuss their private interactions.In an interview with Greg Kelly of Newsmax that was recorded shortly after Mr. Carlson’s departure became public, Mr. Trump offered support for the former anchor. “I’m shocked. I’m surprised,” Mr. Trump said. “I think Tucker’s been terrific. He’s been, especially over the last year or so, he’s been terrific to me.”Mr. Carlson did not respond to a request for comment.Last year, some of Mr. Trump’s advisers had worried that Mr. Carlson seemed poised to support the potential presidential candidacy of Mr. Trump’s top rival, Gov. Ron DeSantis of Florida. Mr. Carlson had given Mr. DeSantis plenty of airtime and praised his policies. But over the past six weeks, as Mr. Trump and Mr. Carlson spoke more often, the Trump team felt increasingly confident that Mr. Carlson would not be weighing in for Mr. DeSantis, who has been heavily promoted by Rupert Murdoch’s media properties including Fox News.The Trump team liked their odds even more when they learned that Mr. Carlson was disgusted with Mr. DeSantis’s decision, in late March, to call President Vladimir V. Putin of Russia a “war criminal.”Senator J.D. Vance, an Ohio Republican who is a close ally of both Mr. Trump and Mr. Carlson, described the Fox News host’s ousting as a shock.“Tucker is a giant, and the most powerful voice against idiotic wars and an economy that placed plutocrats over workers,” Mr. Vance said in a text message. “This is a huge loss for a conservative movement that hopes to be worthy of its own voters. I assume he’ll land on his feet and continue to have a powerful voice. If he doesn’t it will be terrible for the country.”“The best decision I ever made was leaving Fox. Good for you, @TuckerCarlson. You’re free & uncensored!” Kari Lake, a Republican who lost the governor’s race in Arizona last year, wrote in a tweet. Ms. Lake left her job as an anchor at a local Fox channel in 2021.Representative Lauren Boebert, Republican of Colorado, struck an upbeat tone in a Monday tweet: “Wherever Tucker Carlson goes, America will follow!”Joe Kent, a Republican who ran unsuccessfully for Congress in Washington State, tweeted, “Standing by for the launch of the Tucker news network, the people demand it!”One close ally of Mr. Trump said he was happy that Mr. Carlson would not be able to give rocket fuel to any other candidate on Fox’s airwaves. Yet for some candidates in the Republican primary field, the loss of Mr. Carlson could mean a minefield they would have to navigate is now gone from a prominent platform.For instance, Mr. DeSantis’s statement to Mr. Carlson weeks ago describing the Russian invasion of Ukraine as a “territorial dispute” set off alarm bells and a wave of criticism among Republicans in Washington and some donors. It represented the beginning of what has been a period of concern about Mr. DeSantis’s expected candidacy from some who had seen him as the best option to stop Mr. Trump.A Trump adviser, who spoke on the condition of anonymity, said the sense in Mr. Trump’s world was that any pro-Trump host at Fox News had something of a target on their back after the Dominion lawsuit.Mr. Trump’s longest-serving adviser, Roger J. Stone Jr., who is also an old friend of Mr. Carlson’s, said in an interview that Fox News had “essentially canceled the single most influential conservative commentator in the country, at the same time killing a cash cow for the network.”He predicted that Mr. Carlson would take his “massive audience” wherever he ends up next.Alyce McFadden More

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    Will the Fox-Dominion Settlement Affect Its News Coverage? Don’t Count on It.

    There is little reason to think Fox News will adjust its coverage after paying a $787.5 million defamation settlement to Dominion Voting Systems. Its audience won’t let it.After the 2020 election, the talk inside Fox News was all about “a pivot” — a reorienting of its coverage away from former President Donald J. Trump and toward the more conventional Republican politics favored by the network’s founding chairman, Rupert Murdoch.Mr. Murdoch said then that he wanted to make Mr. Trump a “non person.” And as recently as January, when he was deposed as part of Dominion Voting Systems’ defamation lawsuit against Fox, his feelings hadn’t changed. “I’d still like to,” Mr. Murdoch said.But Fox’s audience — the engine of its profits and the largest in all of cable — may not let him.Anyone expecting that Fox’s $787.5 million settlement with Dominion this week would make the network any humbler or gentler is likely to be disappointed. And there probably won’t be much of a shift in the way the network favorably covers Mr. Trump and the issues that resonate with his followers.“How are you going to make an argument to your hosts to not do things that rate?” said Chris Stirewalt, a former Fox News editor and on-air personality who was fired by the network in 2021 and was lined up to be a witness in the Dominion case. “You can’t tell people, ‘Do anything to get a rating, but don’t cover the most popular figure in the Republican Party.’”After a hiatus from the network that lasted much of 2022, Mr. Trump is back on Fox News. He’s sat for three interviews with the network in less than a month. The most recent one, which was taped earlier this month with Mark Levin, will air on Sunday.Even voter fraud — the issue that resulted in Fox being sued for billions of dollars by Dominion and another voting technology company, Smartmatic — hasn’t entirely gone away. In Mr. Trump’s recent interview with the Fox host Tucker Carlson, he implied that there was good reason to doubt the legitimacy of President Biden’s victory, saying, “People could say he won an election.”Mr. Carlson, for his part, has also dipped back into election denialism recently. “Jan. 6, I think, is probably second only to the 2020 election as the biggest scam of my lifetime,” he said on the air on March 14. (His private text messages, revealed as part of Dominion’s suit, show him discussing with his producers how there was no proof the results of the 2020 election were materially affected by fraud.)The Fox host Tucker Carlson with former President Donald J. Trump last year. Mr. Carlson has recently dipped back into election denialism on air.Doug Mills/The New York TimesIn the immediate term, Mr. Murdoch seems unlikely to make any major changes at any of his Fox properties. Doing so, said three people who have worked closely with him, would be seen as the kind of acknowledgment of wrongdoing he is loath to make. The Dominion settlement included no apology — just a glancing reference to a judge’s findings that Fox had broadcast false statements about Dominion machines and their role in a fanciful plot to steal the election from Mr. Trump.The $787.5 million payout is huge — itself an acknowledgment of wrongdoing of sorts, as one of the largest settlements ever in a defamation case. But it did not lead to the same degree of personal humiliation as the phone hacking scandal involving Mr. Murdoch’s British newspapers. Then, in 2011, he had to appear before Parliament and atone for how his journalists had illegally hacked the voice mail accounts of prominent figures. He had a foam pie thrown in his face and admitted during his testimony, “This is the most humble day of my life.”But his signature American news channel is showing few signs of humility. It devoted two short segments on Tuesday to news of the Dominion settlement. Its coverage then quickly returned to the same subjects it’s been hammering since Mr. Biden was elected.Its news reports on the surge of migrants at the southern border are presented under the rubric “Biden Border Crisis.” Republican lawmakers’ efforts to pass laws banning transgender girls from school sports teams receive prominent attention — when only a tiny number are actually playing, and sometimes none at all in states where the laws have been fiercely debated. President Biden is variously portrayed as incoherent, corrupt and weak — especially regarding his posture toward China. Footage of criminals ransacking stores, assaulting police officers and attacking unwitting bystanders play on a loop — often with perpetrators who are Black.Even Mr. Trump’s lies about fraud in the 2020 presidential election have cropped up here and there. Last week, the right-wing commentator Clay Travis appeared on “Jesse Watters Primetime,” which last year replaced a more straight news program at 7 p.m., and declared that Mr. Biden “only won by 20,000 votes after they rigged the entire election, after they hid everything associated with Hunter Biden, with the big tech, with the big media, and with the big Democrat Party collusion that all worked in his favor.”Mr. Watters did not correct or respond to those remarks on the air.The Fox host Jesse Watters did not correct or respond to false statements made on his show about the 2020 presidential election by the right-wing commentator Clay Travis.John Lamparski/Getty ImagesStories of voter fraud, often exaggerated and unsubstantiated, have been part of the network’s D.N.A. well before 2020. In 2012, Roger Ailes, who founded Fox News with Mr. Murdoch, sent a team of journalists to Ohio to investigate still-unproven claims of malfeasance at the polls after former President Barack Obama beat Mitt Romney there. There are, however, some subtle signs that Fox wishes to move past the Dominion episodes and its embarrassing disclosures of network executives privately belittling the same fraud claims they allowed on the air. It has recently started a promotional campaign highlighting its team of global correspondents in 30-second ads. “We have a mission to be on the ground reporting the big stories,” one says. The tensions between its news division and its prime-time hosts were exposed as part of the Dominion case, with private messages from late 2020 showing that hosts like Mr. Carlson and Sean Hannity had mocked and complained about reporters in the Fox Washington bureau who would fact-check the former president’s fraud claims.And last week, Fox chose not to renew the contract of one of the most vociferous election deniers on its payroll, Dan Bongino, formerly the host of a Saturday evening show.A spokeswoman for Fox News said in a written statement that the network had “significantly increased its investment in journalism over the last several years, further expanding our news gathering commitment both domestically and abroad.” The statement added, “We are incredibly proud of our team of journalists.”In his deposition, Rupert Murdoch, the founding chairman of Fox News, acknowledged referring privately to Mr. Trump as “nuts,” “plain bonkers” and “unable to suppress his egomania.”Drew Angerer/Getty ImagesMr. Trump undoubtedly remains one of the biggest stories of the moment, putting the network’s leadership in a position it finds less than ideal. In his deposition, Mr. Murdoch acknowledged referring privately to the former president as “nuts,” “plain bonkers” and “unable to suppress his egomania.” His personal politics are much closer to an establishment Republican in the mold of Senator Mitch McConnell, the Republican leader whom Mr. Ailes worked for as a media consultant decades ago.Mr. Trump can still draw high ratings, even if he is no longer the singular figure he once was in the Republican Party. His interview with Mr. Carlson, after his indictment in Manhattan on felony charges, drew an audience of 3.7 million. An interview that Mr. Carlson did several weeks before with Gov. Ron DeSantis of Florida drew 3.1 million.In the end, the numbers may be the decisive factor about what kind of coverage Fox gives the former president, no matter Mr. Murdoch’s preferences.A former Fox executive, John Ellis, summarized the conundrum the network has with its audience in his newsletter after Mr. Trump announced his 2024 campaign — an event that Fox News broadcast live. “The power of Fox News to influence the outcomes of GOP primaries can be decisive,” he wrote. Fox’s audience has plenty of Trump supporters, of course, but also many others who may prefer another Republican as the nominee. People who identify as politically independent watch it far more than they do CNN or MSNBC, according to data from Nielsen in January and February.“Trump probably cannot win the 2024 nomination if Fox News is determined to defeat him,” Mr. Ellis added. “But in order to defeat him, Fox News must have the permission of its audience to do so.”Michael M. Grynbaum contributed reporting. More

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    What Next for Dominion After Its $787.5 Million Fox Settlement

    The election technology company has several more defamation lawsuits pending against public figures and news outlets.Dominion Voting Systems did more on Tuesday than settle its lawsuit against Fox News for $787.5 million: It also set the tone for the many related defamation cases it has filed. Legal experts say the settlement with Fox News, one of the largest defamation payouts in American history, could embolden Dominion as it continues to defend its reputation, which it says was savaged by conspiracy theories about vote fraud during the 2020 election. The company has several cases pending against public figures including Mike Lindell, the MyPillow executive, and news outlets such as Newsmax.The targets of Dominion’s remaining lawsuits, few of which have deep pockets and legal firepower at Fox’s level, will likely take a cue from Dominion and Fox’s face-off, legal experts said.“Even though it was a settlement, it certainly was a victory for Dominion,” said Margaret M. Russell, a law professor at Santa Clara University. “For other possible defendants, I don’t think this will make them double down; it will make them fearful.”Dominion is the second-largest election technology company operating in the United States, where there are few other major players. The company, whose majority owner is the private equity firm Staple Street Capital, was made “toxic” by the false fraud narratives in 2020, one of Staple Street’s founders said in court documents. At one point, Dominion estimated that misinformation cost it $600 million in profits.Fox said in its court filings that Dominion did not have to lay off employees, close offices or default on any debts, nor did it suffer any canceled business contracts as a result of the news network’s coverage. Fox said in one filing that Dominion had projected $98 million in revenue for 2022, which would make Tuesday’s settlement the equivalent of eight years of sales.Dominion’s customers are largely officials who oversee voting in states and counties around the country; the company served 28 states, as well as Puerto Rico, in the 2020 election. The false stories about fraud that were directed at the company were embraced by some local election officials.In court documents, an expert enlisted by Dominion said that the company had very low early contract termination rates and very high contract renewal rates before the 2020 election, but blamed the preoccupation with the false fraud claims for prompting some clients to exit deals after the vote.Now, Dominion has emerged from its tussle with Fox in a stronger position to win back any skittish clients or score new business, legal experts said.Last month, the judge in Dominion’s case against Fox reviewed evidence of the false claims and wrote that it “is CRYSTAL clear that none of the statements relating to Dominion about the 2020 election are true,” effectively confirming that the company was aboveboard.The secretary of state of New Mexico, Maggie Toulouse Oliver, applauded Tuesday’s settlement.“The harm done by election lies/denialism since 2020 is immeasurable, but this settlement against Fox News provides accountability & sends a strong message we’re happy to see,” Ms. Toulouse Oliver wrote on Twitter. During the midterm primaries last year, she blamed “unfounded conspiracy theories” when she sued officials in Otero county who had cited concerns about Dominion machines in their refusal to certify election results.Fox acknowledged in a statement on Tuesday that some of the claims it had made about Dominion were false, saying that the admission “reflects Fox’s continued commitment to the highest journalistic standards.”John Poulos, Dominion’s founder and chief executive, said in a statement on Tuesday that Fox caused “enormous damage” to his company and “nothing can ever make up for that.” He also thanked the election officials who make up Dominion’s clientele, and nodded to Staple Street’s support. “Lies have consequences,” a lawyer for Dominion Voting Systems said during a news conference.Pete Marovich for The New York TimesDominion drew some complaints that by settling, it had given up the opportunity to extract an apology from Fox or force it through a potentially embarrassing trial. An opinion article in the Daily Beast bemoaned that the voting technology company had “decided to step out of the ring with a bag of money instead of vanquishing one of the country’s most destructive and influential peddlers of hate and disinformation.”Mr. Poulos called the settlement “a big step forward for democracy” in an interview with ABC News broadcast on Wednesday.Legal experts noted that even if Dominion had prevailed in a jury verdict, it would have risked years of expensive battles over appeals from Fox.“The tort of defamation is not about saving democracy from liars,” said Enrique Armijo, a professor and First Amendment expert at Elon University School of Law. “It’s about saving the reputation of the people who have been lied about and making those liars compensate them for the harms to their reputations.”Fox still faces other legal challenges, including a $2.7 billion defamation lawsuit from another election technology company, Smartmatic. Fox said it planned to defend freedom of the press in the case and called Smartmatic’s damages claims “outrageous, unsupported and not rooted in sound financial analysis.” Smartmatic said in a statement that, after the Dominion settlement, it “will expose the rest” of the “misconduct and damage caused by Fox’s disinformation campaign.”Dominion, too, has more cases pending, including against the pro-Trump lawyer Rudolph W. Giuliani and One America News Network. Although the lawsuits involve similar false claims of election fraud, the facts of each case vary, experts said.Attorneys for Mr. Lindell and Mr. Giuliani did not immediately respond to requests for comment, nor did Newsmax or OAN.For the individuals and smaller companies facing legal claims, for whom a substantial jury judgment could be an “existential” threat, settlement may seem more attractive after Tuesday, Mr. Armijo said.“They’re not going to be able to put up the same level of defense that Fox did; they just don’t have the resources to do it,” he said. “It’s hard to see the other defamation defendants in the remaining cases getting any further than Fox did, which, as we saw, is not very far.” 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-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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    Is Public Television the Israeli Government’s Next Target?

    When you host one of the world’s last over-the-air radio shows in Yiddish, fans occasionally get in touch. But you hear more often from critics. They write to Avraham Zaks, the 37-year-old behind the mic of a weekly program called “We Are Here!” to nitpick about his grammar. Or to complain about his accent, which doesn’t sound sufficiently Eastern European to their ears. Some tell him the show needs more religious content.Mr. Zaks, who has flecks of gray in his beard and warm dark eyes and wears wire-rim glasses, does not mind. On some level, he is kind of tickled by the feedback.“I write and say: ‘Thank you very much, we’re doing our best. It’s nice to hear that you’re listening,’” he said on a Wednesday afternoon, just minutes before his show started. “The problem in broadcasting generally is that most of the time, you don’t get any reaction. You feel like you’re speaking to yourself.”“We Are Here!” is one of a handful of niche language radio offerings of Kan, Israel’s public media network, officially known as the Israeli Public Broadcasting Corporation.Avraham Zaks, the host of a weekly program called “We Are Here!” on Kan, Israel’s public media network.Avishag Shaar-Yashuv for The New York TimesMost of the company’s 1,000 employees run a highly regarded TV, radio and digital news division or oversee the production of some of the country’s most prestigious television shows, some of which air on U.S. streaming platforms. As Israel’s answer to the BBC or PBS, Kan, whose headquarters is in Jerusalem, is more interested in gravity than ratings.These days, Kan has a new focus: survival. It sits squarely in the cross hairs of Israel’s right-wing government elected in November. Through Shlomo Karhi, the minister of communications, the government has issued a number of threats against the network, starting with a vow to defund the company and shut it down.“There is no place in this day and age for a public broadcaster when there is a wide range of channels,” Mr. Karhi said during a news conference in January.In case anyone thought he was talking exclusively about saving taxpayer money — Kan receives the equivalent of $180 million a year from Israel’s coffers, about 85 percent of the company’s budget — he also accused the media more broadly of being “too biased toward the left.”A few weeks later, a spokesman for Mr. Karhi said in a statement that the closure of Kan was delayed “until further notice” so that the government could concentrate on overhauling the judiciary, a plan that has convulsed the nation.More recently, the minister said he wanted to strip Kan of three of its eight radio spectrums, which are needed for radio stations. The station broadcasting “We Are Here!” is expected to survive any cull because an Israeli regulation requires foreign language broadcasting in this nation of immigrants. The fear among Kan’s supporters is that once the government is done with the judiciary overhaul, whether its plans end with success or failure, the network is next.“If you’re looking for a textbook on how to turn a democracy into an autocracy, it includes shutting down independent media,” said Tehilla Shwartz Altshuler, a senior fellow at the Israel Democracy Institute, who drafted Kan’s journalistic code of ethics. The media market in Israel, a country of 10 million people, is small by American standards and highly competitive. There are four TV networks in total. The other three are privately held and Kan is generally in a tie for fourth place in the ratings race with Channel 14. That network, often called Israel’s version of Fox News, enthusiastically supports the Netanyahu administration. In recent months, according to the network, it has enjoyed a ratings surge.Political leaders in Israel, like those in virtually every country, try to influence and shape news coverage. But Prime Minister Benjamin Netanyahu seems especially eager to manage the media. Two of the three corruption trials against him involve quid pro quos for favorable coverage from powerful publishers — one the owner of a large daily newspaper and the other a telecom tycoon who operates a popular online news site. (Mr. Netanyahu denies wrongdoing.)“The coalition is not interested in the standard pushback game we’ve seen in the past,” said Shuki Tausig, chief editor of The Seventh Eye, a media watchdog publication. “They want to use regulations to weaken, or even smash, big commercial players that are not obeying them. And they want to eliminate or control Kan.”The network is the successor to the Israel Broadcasting Authority, which was closed in 2017 after critics from across the political spectrum concluded that its programming was shabby and the authority too easily buffeted by politicians, who appointed its board members and controlled its budget.Kan has been designed for imperviousness to partisanship, relatively speaking; the job of selecting board members is up to industry professionals. It’s a structure that has produced a catalog of highly compelling television, including a three-part documentary about Adolph Eichmann, “The Devil’s Confession,” available on Amazon Prime and bankrolled by a number of companies. Last month, Kan was nominated for 125 Ophir Awards, Israel’s version of the Oscars and Emmys, more than double its nearest rival.The media market in Israel, a country of 10 million people, is small by American standards and highly competitive. There are four TV networks in total. Avishag Shaar-Yashuv for The New York Times“All the other networks are trying to make a profit so they are filled with shows where people are on an island for three weeks fighting over a bag of rice,” said Tsuriel Rashi, senior lecturer at Ariel University’s School of Communication. The Eichmann documentary, he added, was “a huge undertaking.”“It’s expensive, and it won’t make money,” he said, “but it’s important.”Kan is in an office building in a generic patch in Jerusalem, not far from an ultra Orthodox neighborhood and near the Israel Tax Authority. During a recent visit, the place hummed with reporters readying an evening broadcast. In the Arab media room, a handful of employees were watching dozens of televisions broadcasting from around the Middle East.“Today is kind of quiet,” said a reporter with his eyes trained on the screens. “There was a machine gun fired into the air in Gaza, which set off sirens in Israel, but no rockets.”“I’ve seen scarier things in my professional life,” one of his colleagues said.Despite the business-as-usual vibe here, morale has sagged, as it would at any institution facing extinction.“We had a companywide meeting a few weeks ago, and I told everyone, ‘I know there are people here who go home at night and have children ask if they will have a job in the morning,’” Gil Omer, chairman of the Israeli Public Broadcasting Corporation, said in an interview at Kan’s offices. “And I told them that we will do everything we can to keep this place alive.”Gil Omer is the chairman of the Israeli Public Broadcasting Corporation, known as Kan and is Israel’s answer to the BBC or PBS.Avishag Shaar-Yashuv for The New York TimesFor now, the government appears to have scaled back its ambitions to those three radio spectrums, which it plans to make available to commercial networks.It’s not a measure Mr. Karhi could take unilaterally. Yoaz Hendel, his predecessor as minister of communications, said in an interview that Mr. Karhi did not seem to understand the job, which has nothing to do with Kan’s budget — that’s the finance ministry’s purview — and is all about building communications infrastructure, like 5G.“Karhi could announce tomorrow that all Israelis need to wear red hats, but that doesn’t mean anyone would listen to him,” Mr. Hendel said. “He should focus on what he was appointed to do, which is to make sure that Israel is well-connected.”Elad Malka, the vice director general at the Ministry of Communications, disagreed. “The minister in charge of public broadcasting is the minister of communications,” he said. “Of course, if there are changes that the minister wants, he needs to go to the Knesset,” Mr. Malka added, referring to Israel’s Parliament.Even if he lacks the authority to unplug Kan on his own, Mr. Karhi, a former member of the Knesset, has grabbed national attention in Israel because his statements appear to reflect the will of the government. And grabbing attention is one of Mr. Karhi’s specialties. In February, he denounced critics of the judicial overhaul plan as “erav rav,” an ancient term for demons who pose as Jews and must be killed. In early March, during the Jewish holiday of Purim, he tweeted a message wishing everyone well — except for reservists soldiers opposed to the judicial overhaul, who he said could “go to hell.”“He has no interest in media,” Mr. Tausig said. “His actions as minister are just political opportunism, a way to demonstrate he’s more extreme than extreme, to serve Netanyahu.”A spokesman for the Ministry of Communications declined to comment.Mr. Zaks, the host of “We Are Here!,” has closely followed the drama that has engulfed his employer, but one recent Wednesday afternoon he was more interested on his upcoming interview with the head of the Yiddish Department at Hebrew University.They discussed how to attract Israel’s ultra Orthodox to evenings of Yiddish theater and literature, a major challenge given that much of the canon is downright irreligious. Reaching the Haredi, or ultra Orthodox, community is important to Mr. Zaks, who was raised in a Lubavitcher community outside Tel Aviv. By the time he was 20, he realized that he was an atheist and left. He spent the next few years discovering popular culture that he had never encountered — television, movies, professional sports.“I knew about radio because it was on all day at home,” he said. “That was it.”The biggest group of Yiddish speakers in Israel are Haredi, but he assumes they are a tiny percent of the audience for “We Are Here!” because it’s a secular show. He knows, however, that every year a few thousand exit the ultra Orthodox community and he’s happy to offer them some connection to the world they have left behind.“It’s like being an émigré and reading a newspaper in the language you were raised in,” he said. “I don’t love the place that I left, but I love Yiddish. It’s a heritage that we have to keep.” More

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    Landmark Trial Against Fox News Could Affect the Future of Libel Law

    Jury selection starts on Thursday in Delaware Superior Court, where the proceedings will tackle misinformation and the limits of journalistic responsibility.Dominion Voting Systems’ defamation case against Fox News, which goes to trial in Delaware next week, is expected to stoke hot-button debates over journalistic ethics, the unchecked flow of misinformation, and the ability of Americans to sort out facts and falsehoods in a polarized age.For a particular subset of the legal and media communities, the trial is also shaping up as something else: the libel law equivalent of the Super Bowl.“I’ve been involved in hundreds of libel cases, and there has never been a case like this,” said Martin Garbus, a veteran First Amendment lawyer. “It’s going to be a dramatic moment in American history.”With jury selection set to begin on Thursday in Delaware Superior Court in Wilmington, the case has so far been notable for its unprecedented window into the inner workings of Fox News. Emails and text messages introduced as evidence showed the Fox host Tucker Carlson insulting former President Donald J. Trump to his colleagues, and Rupert Murdoch, whose family controls the Fox media empire, aggressively weighing in on editorial decisions, among other revelations.Now, after months of depositions and dueling motions, the lawyers will face off before a jury, and legal scholars and media lawyers say the arguments are likely to plumb some of the knottier questions of American libel law.Dominion, an elections technology firm, is seeking $1.6 billion in damages after Fox News aired false claims that the company had engaged in an elaborate conspiracy to steal the 2020 presidential election for Joseph R. Biden Jr. The claims, repeated on Fox programs hosted by anchors like Maria Bartiromo and Lou Dobbs, were central to Mr. Trump’s effort to persuade Americans that he had not actually lost.Lawyers for Fox have argued that the network is protected as a news-gathering organization, and that claims of election fraud, voiced by lawyers for a sitting president, were the epitome of newsworthiness. “Ultimately, this case is about the First Amendment protections of the media’s absolute right to cover the news,” the network has said.It is difficult to prove libel in the American legal system, thanks in large part to New York Times v. Sullivan, the 1964 Supreme Court decision that is considered as critical to the First Amendment as Brown v. Board of Education of Topeka is to civil rights.The Sullivan case set a high legal bar for public figures to prove that they had been defamed. A plaintiff has to prove not just that a news organization published false information, but that it did so with “actual malice,” either by knowing that the information was false or displaying a reckless disregard for the truth.The question of that motivation is central to the Dominion case. The trial judge, Eric M. Davis, has already concluded in pretrial motions that the statements aired by Fox about Dominion were false. He has left it to the jury to decide if Fox deliberately aired falsehoods even as it was aware the assertions were probably false.Documents show Fox executives and anchors panicking over a viewer revolt in the aftermath of the 2020 election, in part because the network’s viewers believed that it had not sufficiently embraced Mr. Trump’s claims of fraud. Dominion can wield that evidence to argue that Fox aired the conspiracy theories involving Dominion for its own financial gain, despite ample evidence that the claims were untrue. (Fox has responded that Dominion “cherry-picked” its evidence and that the network was merely reporting the news.)Lawyers on their way out of Delaware Superior Court. Fox suffered some setbacks this week before the trial.Hannah Beier for The New York TimesMr. Garbus, the First Amendment lawyer, has spent decades defending the rights of media outlets in libel cases. Yet like some media advocates, he believes that Fox News should lose — in part because a victory for Fox could embolden a growing effort to roll back broader protections for journalists.That effort, led mainly but not exclusively by conservatives, argues that the 1964 Sullivan decision granted too much leeway to news outlets, which should face harsher consequences for their coverage. Some of the leading proponents of this view, like the Supreme Court justice Clarence Thomas and Gov. Ron DeSantis of Florida, are conservative heroes who are sympathetic to the right-wing views of Fox programming. But if Fox prevails in the Dominion case, despite the evidence against it, the result could fuel the argument that the bar for defamation has been set too high.Not all media lawyers agree with this reasoning. Some even think a loss for Fox could generate problems for other news organizations.Jane Kirtley, a former executive director of the Reporters Committee for Freedom of the Press, who teaches media law at the University of Minnesota, said she detected from Fox critics “an intense desire for someone to say definitively that Fox lied.” But she added, “I don’t see a victory for Dominion as a victory for the news media, by any means.”“As an ethicist, I deplore a lot of what we’ve learned about Fox, and I would never hold it up as an example of good journalistic practices,” Ms. Kirtley said. “But I’ve always believed that the law has to protect even those news organizations that do things the way I don’t think they should do it. There has to be room for error.”Ms. Kirtley said she was concerned that the Dominion case might lead to copycat lawsuits against other news organizations, and that the courts could start imposing their own standards for what constituted good journalistic practice.Dominion’s effort to unearth internal emails and text exchanges, she added, could be reproduced by other libel plaintiffs, leading to embarrassing revelations for news outlets that might otherwise be acting in good faith.“It’s an intense scrutiny into newsroom editorial processes, and I’m not sure that members of the public will look at it very kindly,” she said. “Maybe the emails show they’re being jocular or making fun of things that other people take very seriously.”Journalism, she said, “is not a science,” and she said she felt uncomfortable with courts determining what constituted ethical news gathering.Fox suffered some setbacks this week before the trial. On Tuesday, Judge Davis barred the network from arguing that it aired the claims about Dominion on the basis that the allegations were newsworthy, a crucial line of defense. On Wednesday, he imposed a sanction on Fox News and scolded its legal team after questions arose about the network’s timely disclosure of additional evidence. The judge said he would probably start an investigation into the matter; the network said its lawyers had produced additional evidence “when we first learned it.”The trial may feature testimony from high-profile Fox figures, including Mr. Murdoch, Mr. Carlson, Ms. Bartiromo and Suzanne Scott, the chief executive of Fox News Media. More

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    How Fox Chased Its Audience Down the Rabbit Hole

    Listen to This ArticleAudio Recording by AudmOn the evening of Nov. 19, 2020, Rupert Murdoch was watching TV and crawling the walls of his 18th-century mansion in the British countryside while under strict pandemic lockdown. The television hosts at Murdoch’s top cable network, Fox News, might have scoffed at such unyielding adherence to Covid protocols. But Jerry Hall, his soon-to-be fourth ex-wife and no fan of Fox or its conservative hosts, was insisting that Murdoch, approaching his 90th birthday, remain cautious.The big story that day, as it had been every day in the two weeks since the election, was election theft, and now Rudolph W. Giuliani was giving a news conference at the Republican National Committee. With Sidney Powell, the right-wing attorney and conspiracy theorist, at his side, Giuliani, sweating profusely, black hair dye dripping down the side of his face, spun a wild fantasy about Joe Biden’s stealing the election from President Donald J. Trump. Dizzying in its delusional complexity, it centered on a supposed plot by the Clinton Foundation, George Soros and associates of Hugo Chávez to convert Trump votes into Biden votes by way of software from Smartmatic and voting machines from Dominion Voting Systems.Murdoch wasn’t pleased. He had built the most powerful media empire on the planet by understanding what his audience wanted and giving it to them without fear or judgment. But Trump now appeared to be making a serious bid to overturn a legitimate election, and his chaos agents — his personal lawyer Giuliani chief among them — were creating dangerous new appetites. Now Murdoch was faced with holding the line on reporting the facts or following his audience all the way into the land of conspiracy theories. Neither choice was necessarily good for business. At 5:01 p.m. London time, he sent an email to his friend Saad Mohseni — an Afghan Australian media mogul sometimes referred to as the Afghan Rupert Murdoch — from his iPhone. “Just watched Giuliani press conference,” he wrote. “Stupid and damaging.” Shortly after, he sent another email, this one to his Fox News chief executive, Suzanne Scott: “Terrible stuff damaging everybody, I fear. Probably hurting us, too.”Murdoch had for weeks — for years, really — avoided making a choice. Trump and his supporters were already furious at Fox News for being the first network to call Biden the victor in Arizona, and two newer cable networks were offering them a version of reality more fully on Trump’s terms. One of them, Newsmax, was moving up in the ratings while refusing to call Biden the winner. When Murdoch’s own paper, The Wall Street Journal, reported a few days before Giuliani’s news conference that Trump allies were considering pouring money into Newsmax to help it mount a stiffer challenge to Fox, Murdoch alerted Scott to the piece. Fox would have to play this just right, he said in an email. Take Giuliani with “a large grain of salt,” he wrote, but also be careful not to “antagonize Trump further.”The network’s coverage of the Giuliani news conference showed just how impossible this balancing act would be. Immediately afterward, a Fox News White House correspondent, Kristin Fisher, went to the network’s camera position outside the West Wing and fact-checked the allegations. “So much of what he said was simply not true,” she told Fox viewers. Giuliani, she said, provided no hard proof for a claim that “really cuts to the core of our democratic process.” Fox’s opinion hosts, who had been broadcasting the Giuliani-Powell Dominion fantasies to varying degrees themselves — some appearing to endorse them outright — had been complaining internally that the news division’s debunking efforts were alienating the core audience. An executive at the Fox Corporation, the network’s parent company, had recently started a brand protection effort to, among other tasks, “defend the brand in real time.” After Fisher’s segment, the group sent an alert to top news executives. In a follow-up email, Scott vented to a deputy. “I can’t keep defending these reporters who don’t understand our viewers and how to handle stories,” she wrote. “We have damaged their trust and belief in us.” One of Fisher’s bosses told her that she needed to do a better job of “respecting our audience,” and Fisher later complained of feeling sidelined. More