It was set to become one of the most consequential defemation cases against one of America’s most powerful media companies, when electronic voting hardware suppliers, Dominion Voting Systems sought US$1.6 billion in damages against Fox Corporation for damaging its reputation, accusing them of “repeatedly aired falsehoods about its voting machines.”
But on Tuesday this week, the landmark trial was dismissed, after Fox agreed to a US$787.5 million payout. Who were the key players in this lawsuit, and more importantly, what now? Let’s take a close look.
Who are Dominion Voting Systems?
Dominion Voting Systems are a Toronto-founded company that produce election technology, such as electronic voting hardware and software, voting machines and tabulators.
It is owned by a New York-based, middle-market private equity firm, Staple Street Capital, who acquired the business in July 2018.
By selling, licensing and maintaining its voting products, Dominion has become one of America’s largest providers of election technology.
The company has been led by its CEO and President, John Poulos since its inception in 2003. Poulos broaden the accessibility of voting machines by adding audio readouts for audibly impaired voters, “sip and puff” system for quadriplegics, and larger screens for the blind and visually impaired.
In 2011, when he was named a Top 40 Under 40 by The Globe and Mail, Poulos, 48, said the voting procedure has forgotten about disabled people.
“If you were a blind person, you would have to rely on someone else to record your ballot,” he said. “It limits access to democracy.”
Why did Dominion Voting Systems sue Fox?
In January 2021, Dominion sued Donald Trump’s then lawyer Rudy Giuliani, accusing him of exploiting false election-fraud claims in an attempt to sell gold and silver coins, cigars and supplements on his social platform. Dominion accused a number of other networks and public figures of spreading spurious narratives, thereby exposing its employees to harassment.
Dominion said it wanted to “set the record straight, to vindicate the company’s rights under civil law, to recover compensatory and punitive damages, and to stand up for itself, its employees, and the electoral process.”
“Even after the United States Capitol had been stormed by rioters who had been deceived by Giuliani and his allies, Giuliani shirked responsibility for the consequences of his words and repeated the Big Lie again,” the company added, referring to false claims Giuliani made about the 2020 presidential election being stolen during his time as Trump’s attorney.
Fox was then issued a lawsuit, accused of attacking the company and damaging its reputation by echoing conspiracy theories that tried to explain Trump’s failed bid for a second term.
What happened this week?
On Tuesday, a jury in Wilmington, Delaware was selected, and the lawyers from both sides were preparing to make their opening statements. A few hours later, an agreement was reached between the parties, as Judge Eric M. Davis announced the case had been resolved.
According to CNN one of the lawyers representing Fox flashed a piece of paper to a Dominion lawyer. The two apparently then stepped outside before returning and continuing their conversation.
Fox had agreed to a US$787.5 million settlement.
Outside the courthouse, a lawyer for Dominion, Justin Nelson, said, “The truth matters. Lies have consequences.”
“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.”
In a statement, Fox Corporation said that they “acknowledge the court’s rulings finding certain claims about Dominion to be false.”
“We are 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.”
Jim Rutenberg from the Times spoke to a source familiar with the details of the agreement, and said that under the terms of the settlement, “Fox News will not have to apologise or admit to spreading false claims on network programming.”
What would have happened if the trial had gone ahead?
The trial was largely expected to have exposed Fox Corporation — a cable network which has historically evaded outside scrutiny.
The abrupt settlement means that no high-profile Fox executives will have to testify — these witnesses included chairman of Fox Corporation Rupert Murdoch and hosts Tucker Carlson, Sean Hannity and Maria Bartiromo — some of whom, according to Rutenberg, “privately expressed concerns about the veracity of claims being made on its shows.”
Had the trial gone ahead, the jury would have had to decide whether Fox had acted with “actual malice” (ie. they had “knowingly broadcast lies or had recklessly disregarded obvious evidence that the statements were untrue.”)
Dominion has several other defamation suits pending — including ones against Fox competitors Newsmax and OAN, election-deniers such as online retailer Overstock.com founder and its former CEO Patrick Byrne, Minnesota-based pillow manufacturer MyPillow’s chief executive Mike Lindell, and the ones against former lawyers for Trump, Rudy Giuliani and Sidney Powell.
In 2021, Dominion claimed that Patrick Byrne, 60, made a total of 18 defamatory public remarks relating to the company, and promoted conspiracy theories saying that Joe Biden’s win over Trump was fraudulent.