Dominion Voting Systems, which accused Fox News of defamation in its 2020 United States presidential election coverage, and Fox News have reached a $787 million settlement.
The conservative news network will avoid a high-profile trial due to a last-minute agreement reached on Tuesday as opening statements were scheduled to begin.
Already, court documents have disclosed embarrassing behind-the-scenes conversations regarding Fox News' coverage of former President Donald Trump's unsubstantiated claims that widespread election fraud occurred.
Dominion filed a lawsuit against Fox News in 2021, alleging that the network intentionally broadcasts fraudulent information about its voting machines to increase lagging viewership. Trump and his allies asserted that Dominion's voting machines were used to rig the 2020 election, culminating in Joe Biden's victory.
Initially, the voting machine manufacturer demanded $1.6 billion from Fox for "intentionally and falsely blaming Dominion for President Trump's loss." Tuesday's settlement is approximately half as much.
Fox has maintained that it was merely reporting on Trump's allegations, not endorsing them, and that the First Amendment protected its coverage. These safeguards make it difficult for plaintiffs to win defamation lawsuits in the United States.
"The parties have resolved their case," Delaware Superior Court Judge Eric Davis stated on Tuesday, releasing the recently selected 12-person jury.
Dominion disclosed the settlement amount on Tuesday, and CEO John Poulos stated that Fox had confessed to spreading false information about the company.
The settlement, according to Dominion attorney Justin Nelson, "represents vindication and accountability," and "lies have consequences." Dominion attorneys declined to comment whether Fox News would publicly apologize or implement reforms.
Fox stated in a statement, "We acknowledge" the court's earlier judgment that specific claims made by the network's anchors about Dominion were false.
This settlement demonstrates Fox's commitment to maintaining the highest journalistic standards. We hope that our decision to settle this dispute with Dominion amicably, rather than through a divisive trial, will enable the nation to move on from these issues," the statement said.
As a result of the settlement, the network's owner, conservative media magnate Rupert Murdoch, and other controversial personalities, including Tucker Carlson and Sean Hannity, will not be required to provide testimony.
Davis stated during pretrial proceedings that Fox had clearly broadcast fraudulent statements about Dominion following the election. To prevail at trial, however, Dominion would have needed to demonstrate that Fox News acted with actual malice, i.e., that it knew the information it was sharing was false or acted with "reckless disregard" for the truth.
Disclosures from pretrial proceedings have already been embarrassing for Fox, with some depicting television personalities and executives privately rejecting Trump's election-related claims or expressing dislike for the former president while publicly supporting and praising the allegations.
In one filing, Murdoch referred to allegations of voter fraud by Trump, his erstwhile advisers Rudy Giuliani and Sidney Powell as "damaging" and "really crazy stuff."
Murdoch acknowledged in a deposition that some on-air hosts had "endorsed" the false claims, but he denied that the network as a whole had promoted the lie, according to court documents filed by Dominion.
Star mooring Tucker Carlson expressed his eagerness to "ignore Trump most nights" to his staff.
"I loathe him vehemently," Carlson said.
Much of the content depicted a network concerned about losing its audience after announcing on election night that Biden had won the pivotal swing state of Arizona. This communication infuriated Trump and a large number of his supporters.
Bret Baier, one of Fox's most prominent news anchors, remarked on the audience's anger and suggested rescinding the call or giving the state to Trump.
In a November 16 memo, Murdoch stated, "We do not wish to antagonize Trump further."
Dominion argued in court documents, "Fox knew the truth... It was aware that the allegations against Dominion were "absurd," "crazy," "ridiculous," and "nuts." However, it utilized the influence and authority of its platform to promote this false story."
On the other hand, Fox accused Dominion of "cherry-picking and quoting out of context."
