Tuesday, April 18, 2023

Losing $1.6B lawsuit wouldn't kill Fox Corp: experts

Travis Gettys
April 17, 2023

Rupert Murdoch (AFP)

Fox Corporation could likely withstand any financial penalty from the Dominion Voting Systems lawsuit, experts say.

The defamation trial, which is scheduled to start Tuesday after a one-day delay, will decide whether the company can be held liable for false claims by Fox News broadcasters about Donald Trump's election loss in 2020, but experts believe the $1.6 billion sought in compensatory damages will eventually be reduced by a jury or in an out-of-court settlement, reported NBC News.

The jury will almost certainly not award Dominion all of that money in damages, according to Lyrissa Lidsky, a constitutional law professor at the University of Florida, but could impose punitive damages against Fox for “extremely wrongful conduct," adding that she has not yet seen any evidence the full amount would be awarded.

“There’s a litigation strategy to ask for more than you think you can really get to anchor the number high,” Lidsky said.

Even in the unlikely event the full amount was levied against Fox, financial experts say that wouldn't be the end of the world for a company with $4 billion in reserve at the end of last year, although stock market analysts say its stock would likely take a hit due to the lawsuit.

The company's stock was trading at $33.62 late Monday morning but has fallen more than 10 percent since Dominion filed the suit in March 2021.

“At a minimum, the constant barrage of negative headlines should be an overhang on near-term investor sentiment,” wrote Bank of America Securities analysts in an estimate last month.

Fox News should have settled Dominion's 'killer case' long ago: legal experts

Matthew Chapman
April 17, 2023

Fox News (Shutterstock)

A sudden one-day delay in the Dominion Voting System's defamation suit against Fox News has led many to speculate that the parties could be trying for a last-minute settlement negotiation. The Washington Post reported that this was the purpose of the delay, although on Monday Delaware Superior Court Judge Eric Davis told jurors to expect to return tomorrow for proceedings.

Still, Salon reported, legal experts argue Fox News could be feeling the heat — and the rational decision would have been to pursue a settlement a long time ago, which they failed to do during mediation last December and, as recently as a few weeks ago, it appeared an option that didn't appear to be remotely on the table.

"Former U.S. Attorney Harry Litman tweeted that the case could be a candidate for a settlement because 'Dominion has a killer case on liability but seeking damages that are hard to justify.' A big settlement offer from Fox 'could make sense for both," he wrote," reported Salon.

"Attorney Bradley Moss added that 'trials are a wild card' and there is a 'non-trivial chance the pre-trial rulings get reversed on appeal and the whole thing is tossed.' Former federal prosecutor Renato Mariotti wrote that Fox 'should have pursued this strategy long ago, settling before damaging emails and texts became part of the public record.' Former federal prosecutor Elie Honig, a CNN legal analyst, said on Sunday that 'there's something about being on the eve of trial that can really sober up both parties.'"

Dominion was accused repeatedly by guests on Fox News of being part of a secret scheme to rig the election, with little to no pushback from hosts, even as many behind the scenes said in private communications they knew there was no evidence for it. The lawsuit was originally seeking $1.6 billion in damages, but a Fox email over the weekend indicates Dominion may no longer pursue the $600 million lost-profits component of the damages at trial.

Fox's legal problems were complicated even further by a lawsuit from a former Tucker Carlson producer, Abby Grossberg, who alleges the network's lawyers counseled her to mislead investigators in a deposition on the Dominion case.

The outcome of the case, or a settlement that resolves it before trial, would have significant implications for the right-wing cable network. Another elections equipment company, Smartmatic, has a $2.7 billion lawsuit ready to go against Fox, and it would likely be influenced by the outcome of the Dominion lawsuit. Meanwhile, this all comes at a time when Fox is seeking to renew and increase its licensing fees with major cable service providers, which constitutes the bulk of the network's revenue, and their current legal problems could jeopardize their leverage in these talks.


Fox News takes out full-page ad boasting it's 'trusted more than ever' ahead of defamation trial

Brad Reed
April 17, 2023

Protesters rally against Fox News outside the Fox News headquarters at the News Corporation building, March 13, 2019 in New York City. On Wednesday the network's sales executives are hosting an event for advertisers to promote Fox News. Fox News personalities Tucker Carlson and Jeanine Pirro have come under criticism in recent weeks for controversial comments and multiple advertisers have pulled away from their shows. (Photo by Drew Angerer/Getty Images)

A Fox News barrels toward a potentially perilous defamation courtroom battle with Dominion Voting Systems, the network is nonetheless acting with defiance by taking out a full-page ad in the New York Times boasting of its purported trustworthiness.

NPR media correspondent David Folkenflik on Monday posted a photo of the ad on Twitter, and it showed that Fox claims that it is "trusted now more than ever" based on a YouGov poll showing the network easily besting rival networks in terms of viewer trust.

Despite Fox News' boasts, however, many legal experts have said that the network is in significant jeopardy thanks to internal messages unearthed by Dominion's lawyers that they say present real evidence of malice.

Among other things, Dominion found that former Trump lawyer Sidney Powell got her false theories about Dominion rigging the election for President Joe Biden from a woman who claimed to have learned it from the wind.

They also obtained multiple internal messages from Fox News hosts and producers showing that they weren't buying bogus claims about Dominion conspiring with dead Venezuelan strongman Hugo Chavez to rig the 2020 election, although they seemingly did nothing to stop such claims about Dominion from being shown on air.

The Fox-Dominion trial is set to begin on Tuesday, although reports have indicated that the network is seeking to come to a last-minute settlement with the firm.

Former Fox News host begs Dominion not to settle and drops hints about network's sleazy tactics

Brad Reed
April 17, 2023

Traffic on Sixth Avenue passes by advertisements featuring Fox News personalities, including Bret Baier, Martha MacCallum, Tucker Carlson, Laura Ingraham, and Sean Hannity, adorn the front of the News Corporation building, March 13, 2019 in New York City. (Photo by Drew Angerer/Getty Images)

At least one former Fox News host is hoping that Dominion Voting Systems does not settle its $1.6 billion defamation lawsuit against the network.

Writing on Twitter Sunday night, former "Fox & Friends" cohost Gretchen Carlson reacted with alarm to reports that her one-time employer was making a last-minute push to settle the lawsuit.

"PLEASE Dominion --- Do not settle with Fox!" she wrote. "You're about to prove something very big."

While Carlson didn't explain directly what the "something very big" was, she did drop hints about it in a follow-up tweet elaborating her feelings on the case.

"Here's my take on Fox-Dominion case-(as I'm sending telepathic messages to Dominion to not settle!) I can talk about the current case-but I can't then answer next logical question (b/c of my NDA) -- 'Did Fox ever ask you to make up sh*t when you were there?'" she explained. "Therein lies the problem."

In other words, it appears Carlson is hinting that Dominion's case has the potential to show that Fox News may have deliberately instructed its hosts to mislead viewers over the years.

Carlson was a fixture on Fox News' flagship morning show for years until 2016, when she filed a bombshell sexual harassment lawsuit against network founder Roger Ailes alleging that she was fired for refusing his sexual advances.

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