Dominion, the manufacturer of voting machines, has resolved a defamation lawsuit against Fox News regarding its coverage of the 2020 presidential election.
In a last-minute settlement before the trial, the network agreed to pay $787.5m (£644m), roughly half of the $1.6bn that Dominion had initially sought.
Dominion argued that Fox’s erroneous claims that Donald Trump’s election had been rigged were detrimental to its business.
The agreement exempts Fox executives such as Rupert Murdoch from testifying.
Fox stated in a statement that the settlement reached on Tuesday in one of the most anticipated defamation trials in recent U.S. history reflected its “commitment to the highest journalistic standards.”
John Poulos, the chief executive officer of Dominion, stated at a press conference that the agreement included Fox “admitting to telling lies, causing enormous harm to my company.”
A Dominion attorney, Justin Nelson, informed reporters that “the truth matters”
“Lies have consequences,” he continued. “More than two years ago, a deluge of falsehoods swept Dominion and election officials across the United States into an alternative universe of conspiracy theories, causing severe damage to Dominion and the nation.”
Mr. Nelson added that in order for “democracy to endure,” Americans must “share a commitment to the truth.”
The case’s opening arguments were scheduled to begin on Tuesday afternoon.
The announcement of a settlement followed an unexplained delay of several hours following the conclusion of jury selection, prompting speculation that negotiations were taking place behind the scenes.
On Monday, Delaware Superior Court Judge Eric Davis announced a 24-hour deferral in the trial’s start time.
US media reported that it was to give both parties an opportunity to reach a settlement, although he provided no explanation.
Tuesday morning, both parties appeared to be preparing for a protracted trial.
Prior to the trial, Fox’s attorneys repeatedly argued that the $1.6 billion in damages that Colorado-based Dominion was pursuing was grossly exaggerated.
Fox stated that the “real cost” of the case would be the “cherished” freedom of speech and press guaranteed by the First Amendment of the United States Constitution.
Dominion’s lawsuit alleged that the conservative network had tarnished the reputation of the electronic voting company by broadcasting false information about former President Trump’s vote being taken in 2020.
Legal findings disclosed prior to the trial indicated that a number of Fox executives and journalists privately questioned claims that the 2020 presidential election was stolen, but still broadcast them.
Top-rated host Tucker Carlson said in a series of text messages that some of the claims were “absurd” and “insane,” while another host, Sean Hannity, said he did not believe them “for a second.”
Fox has stated that the remarks were misinterpreted.
Prior to the trial, Judge Davis ruled that Dominion’s claims had already been disproven.
A positive result for Fox?
Some legal experts believe the resolution was a net positive for the network, despite the enormous payout.
Roy Gutterman, a professor and expert on the First Amendment at Syracuse University, stated that Fox “was facing even greater public scrutiny of its post-election coverage and news operations.”
“With a six-week trial on the horizon, this was going to be arduous for everyone involved and embarrassing for Fox,” he said.
However, a verdict against Fox would have been even more expensive and would have had grave implications for future rulings on the actual malice standard and the First Amendment.
Michelle Simpson Tuegel, a civil litigation attorney, told the BBC that the settlement “speaks to the massive threat Fox perceived from this litigation.”
“It is difficult to say how damaging a decision against Fox would have been for the company, beyond the financial cost of the verdict,” she said.
Ms. Tuegel added: “However, the reputational damage caused by executives, including chairman Rupert Murdoch, and hosts taking a stand appears to have pushed the parties towards a resolution.”
Fox is still facing a second, comparable defamation lawsuit from Smartmatic, an election technology company seeking $2.7 billion.
Dominion has pending legislation against OAN and Newsmax, two conservative news networks.
Additionally, the company has filed lawsuits against Trump allies Rudy Giuliani, Sidney Powell, and Mike Lindell.
