A major cable news giant is poised for a key battle in the courtroom.

Following a costly settlement with Dominion Voting Systems, Fox News now faces a $2.7 billion lawsuit from Smartmatic over allegedly false electoral claims, as NPR reports.

Fox News has come under legal scrutiny once more as Smartmatic, a voting technology company, has filed a defamation lawsuit for $2.7 billion.

This legal action stems from claims about the 2020 presidential election that Smartmatic has labeled as false and damaging its reputation.

The controversy began after the 2020 election when Fox News aired content in which hosts and guests questioned the integrity of the election results.

Smartmatic argues that these broadcasts were not only erroneous but also harmful, directly impacting their business and standing in the voting technology market.

Events Prompting Smartmatic's Major Legal Move

Previously, Fox News had settled a similar lawsuit with Dominion Voting Systems, another voting equipment manufacturer, which claimed the network had also spread misleading statements about its products and services during the 2020 election cycle. This earlier settlement cost Fox News a staggering $787 million.

Subsequent to the settlement, several key figures at Fox News, including well-known anchors and hosts, either left or were dismissed from the network.

This illustrated significant internal and public reactions to the ongoing legal challenges and their implications for the network.

Further compounding Fox News' troubles, a New York state appellate court recently cleared the way for Smartmatic's lawsuit to proceed. This decision has underscored the serious legal ramifications that might follow from the false claims aired by the network.

Discovery Reveals Knowledge of False Claims

During the pre-trial discovery phase, there were revelations of internal communications at Fox News. These documents appeared to show that individuals across various levels of the organization, from junior producers to top executives and prime-time hosts, were aware that the claims being broadcast about the election were not necessarily accurate.

Nonetheless, despite this knowledge, Fox News personnel permitted and at times even endorsed the airing of claims that the election was stolen from then-President Donald Trump.

This misrepresentation extended through several program segments, involving figures like Maria Bartiromo and the late Lou Dobbs, who played direct roles in the dissemination of the unsupported allegations specifically involving Smartmatic.

A notably awkward moment on the network involved a segment with voting technology expert Edward Perez who refuted the false claims concerning election technology, an attempt to offset the prior misleading reports.

Smartmatic's Case Moves to Trial as Fox Defends

According to Erik Connolly, Smartmatic's lead attorney, the Supreme Court of New York has rejected a motion for dismissal from Fox Corporation, allowing the substantial defamation claims to go to trial. Connolly expressed readiness to present a strong case against Fox, emphasizing the need for accountability.

However, Fox News' legal team is contesting the legitimacy and scale of the claimed damages. They argue that Smartmatic's financial loss claims are inflated and aimed at impacting free speech protections under the First Amendment.

Additionally, statements from Fox News' lawyers emphasize their preparedness to defend the network's coverage of the events, which they describe as newsworthy at the time. They believe the evidence, including financial expert reports, will demonstrate the exaggerated nature of Smartmatic’s damage claims.

As the trial approaches, both parties are gearing up for what may be a landmark legal battle over the implications of broadcast content on public figures and entities during crucial political processes. This lawsuit not only highlights the potential legal consequences of media misinformation but also the importance of journalistic integrity in shaping public discourse.