What we're following
- Fox News and Dominion Voting Systems said this afternoon that they had reached a settlement agreement, just moments before opening arguments were set to begin.
- Dominion, a privately owned company that makes voting equipment, was the subject of conspiracy theories surrounding the 2020 presidential race as Donald Trump and his allies pushed the lie that the election, which he lost to Joe Biden, was stolen from him.
- In 2021, the company filed a defamation suit against Fox News and its parent company, Fox Corp., challenging a number of the claims about Dominion made by hosts and guests on Fox News and Fox Business and by host Lou Dobbs on social media, and had sought $1.6 billion in damages.
- Delaware Superior Court Judge Eric Davis had agreed with Dominion that the claims were false. Had the trial proceeded, Dominion would have had to convince the Wilmington jury that Fox acted with “actual malice” — knowing something was false or with reckless disregard for the truth — when it aired the conspiracy theories.
- Fox News had argued that the case is about the “First Amendment protections of the media’s absolute right to cover the news.”
Scoop: The special master investigation is over, source says
The lawyer appointed as special master in the defamation trial will no longer investigate Fox News now that Dominion and the media giant have settled the case, according to a source familiar with the situation.
Judge Eric Davis this morning appointed Delaware litigator John A. Elzufon to probe whether Fox News and its parent company, Fox Corp., had "complied with their discovery obligations." The settlement reached between both parties this afternoon averted a trial but initially left unclear whether Elzufon's work would continue.
The source familiar with the matter said tonight that Elzufon's investigation will not go forward.
Dominion declined to comment, and Fox did not immediately respond to a request for comment.
Davis last week sanctioned Fox for not turning over evidence in a timely fashion. The evidence in question included audio recordings of Rudy Giuliani appearing to concede to Fox News host Maria Bartiromo that he did not have proof of fraud in the 2020 presidential election.
Elzufon had been given a wide investigative berth. In a four-page filing this morning, Davis said Elzufon could request depositions with whomever he wishes and that the associated costs must be paid by Fox.
Dominion settlement ranks among biggest for U.S. defamation suits
Although the $787.5 million settlement is less than half of the $1.6 billion in damages Dominion initially sought from Fox News, it's still one of the biggest known dollar amounts for a defamation lawsuit filed in the U.S.
“It might be the biggest of its kind in history,” said RonNell Andersen Jones, a professor at the University of Utah College of Law who specializes in the First Amendment.
The confidential aspect of most settlements means it's not possible to know whether there's been a larger one.
Another sizable defamation penalty came just last year in the Connecticut lawsuit brought against Infowars' Alex Jones and his company, Free Speech Systems. Last year, Jones was ordered to pay $1.4 billion for defamation stemming from the suit.
In that case, a judge ordered Jones to pay $473 million in punitive damages to families of the victims of the Sandy Hook school shooting after he promoted false claims that the massacre was a hoax. The penalty was in addition to an earlier demand from jurors that Jones pay $965 million to the victims' families and an FBI agent who responded to the 2012 attack.
Bill O'Reilly on Dominion settlement: 'The nightmare will continue' for Fox
Former Fox News host Bill O’Reilly reacted to today's settlement in part by highlighting the pending litigation facing his former employer.
"Going forward, Fox News faces a similar lawsuit from the Smartmatic Company and perhaps thousands of lawsuits from Fox shareholders. What a disaster," O'Reilly wrote on his website.
O’Reilly, who was ousted from the network in April 2017 after an internal investigation into allegations of sexual harassment, went on to criticize Fox.
“This is what happens when money becomes more important than honest information,” he wrote.
“Once the facts begin to overwhelm any point of view, a news agency has an obligation to say that,” O'Reilly said, adding that he lost more than a thousand paid members after he concluded the 2020 election was not stolen.
“Fox News saw it differently, and now payment has been rendered,” he said. “But the nightmare will continue for FNC.”
Dominion suggests no on-air apology coming from Fox
Pressed about whether the settlement would require Fox News to issue an on-air retraction, correction or apology, a Dominion spokesperson did not directly answer but indicated that Fox’s acknowledgment of having made false statements is likely to be the only apology the public would see.
“An apology is about accountability, and today Dominion held Fox accountable,” the spokesperson said in a statement.
“Fox paid a historic settlement and issued a statement acknowledging that the statements about Dominion were false.”
In a statement after the settlement was announced in court, Fox News said, “We acknowledge the Court’s rulings finding certain claims about Dominion to be false.”
Dominion lawyer on Fox settlement: 'The truth matters'
Dominion lawyer Stephen Shackelford said he hoped the settlement will have a lasting impact on the news industry.
In an MSNBC News interview, Shackelford praised Judge Eric Davis for not giving Fox News a "free pass" and for recognizing that "just because something is newsworthy, if you know it's a lie, you can't publish it, or you face liability."
"The truth matters, and $787.5 million, hopefully, will make a difference the next time a major news network decides to put profits over the truth," Shackelford added.
Dominion CEO full statement on settlement and Fox 'telling lies'
Dominion Voting Systems CEO John Poulos shared a lengthy statement after the company's $787.5 million "historic settlement" with Fox News was reached.
He noted that "Fox has admitted to telling lies" about his company and said, "Nothing can ever make up for that.""Throughout this process, we have sought accountability and believe the evidence brought to light through this case underscores the consequences of spreading and endorsing lies," Poulos said.
"Truthful reporting in the media is essential to our democracy," he added.
Poulos also thanked the court, election officials, the company's legal team and Staple Street Capital — the private equity firm that owns Dominion.
Smartmatic pledges to 'expose the rest' of Fox's 'disinformation campaign' in its own lawsuit
Dominion wasn't the only voting machine company suing Fox. Smartmatic, a multinational firm that makes electronic voting systems, is pursuing a $2.7 billion defamation lawsuit against Fox in New York Supreme Court.
Smartmatic made it clear in a statement after the Dominion settlement was announced that it is not backing down:
"Dominion’s litigation exposed some of the misconduct and damage caused by Fox’s disinformation campaign. Smartmatic will expose the rest. Smartmatic remains committed to clearing its name, recouping the significant damage done to the company, and holding Fox accountable for undermining democracy."
Dominion CEO: ‘Fox has admitted to telling lies’
Dominion Voting Systems CEO John Poulos said outside the courtroom that "Fox has admitted to telling lies" in reaching a $787.5 million settlement in the monthslong legal battle.
Dominion sued Fox News in 2021, alleging it defamed the voting machine maker as it shared baseless claims that Dominion's voting machines had "rigged" the 2020 presidential election and flipped millions of votes.
The lawsuit had demanded $1.6 billion in damages.