Judge Limits Discovery in Smartmatic’s $2.7B Fox Lawsuit

Judge Limits Discovery in Smartmatic’s $2.7B Fox Lawsuit \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ A judge has denied Fox News access to federal records tied to bribery charges against Smartmatic co-founder Roger Piñate, a key development in Smartmatic’s $2.7 billion defamation lawsuit against Fox. Smartmatic alleges Fox spread baseless claims about the company’s role in the 2020 election, while Fox argues it merely reported on Trump’s allegations. Both sides are locked in disputes over depositions and document access ahead of trial.

Smartmatic vs. Fox News: Quick Looks

• Fox’s Request Denied: Judge blocks access to DOJ files on Smartmatic co-founder’s bribery charges.
• Defamation Claims: Smartmatic alleges Fox spread falsehoods about rigging the 2020 election.
• Depositions Debate: Smartmatic seeks to question Fox Corp. board members, but the court declines.
• Bribery Allegations: Charges against Smartmatic executives involve contracts in the Philippines from 2015-2018.
• Larger Context: Smartmatic has already settled cases with Newsmax and OANN; Fox settled with Dominion.

Deep Look

The high-stakes defamation lawsuit between Smartmatic, a voting technology company, and Fox News took another twist Thursday when a New York judge ruled that Fox could not access records related to federal bribery charges against Smartmatic co-founder Roger Piñate.

The Bribery Case

The bribery charges, filed in August 2023, accuse Piñate and two other Smartmatic executives of paying over $1 million to Filipino election officials between 2015 and 2018 to secure contracts for Smartmatic’s voting machines. Prosecutors allege that the payments were disguised as loans and funneled through slush funds created by overcharging for equipment.

While Piñate and at least one other executive have pleaded not guilty, the case has cast a shadow over Smartmatic’s business operations. However, Smartmatic itself is not named as a defendant. The company has suspended the accused executives and reiterated its commitment to transparency in election services.

Fox lawyers argued that the charges are relevant to Smartmatic’s $2.7 billion defamation suit, as they could influence the company’s reputation and business prospects. “Governments will now have to consider the risks of doing business with a company whose executives face serious corruption accusations,” Fox attorney Brad Masters told the court.

Masters requested that Smartmatic turn over communications related to the charges, any documents shared with the DOJ, and internal discussions about the case’s impact.

Judge’s Decision

Judge David B. Cohen, however, denied Fox’s request, stating that an indictment alone is insufficient to presume guilt. “It’s a mere accusation. It raises no presumption of guilt,” Cohen said, emphasizing that the bribery charges are not directly connected to the core issue of the defamation case.

Cohen had previously rejected similar requests from Fox during the DOJ’s investigation and found no new justification for revisiting the matter now that the indictment has been issued.

Smartmatic’s Defamation Claims

Smartmatic’s defamation lawsuit alleges that Fox News knowingly aired false claims about the company’s involvement in rigging the 2020 U.S. presidential election. These claims were promoted by Trump allies Rudy Giuliani and Sidney Powell on Fox programs, accusing Smartmatic of being part of a vast conspiracy to alter the election outcome.

Smartmatic argues that these allegations caused severe reputational and financial harm, essentially decimating its business. The company has sought extensive depositions and documents from Fox to support its claims, asserting that Fox Corp. executives had a role in shaping the coverage.

Fox counters that it was simply reporting on allegations made by then-President Donald Trump and his legal team, which were inherently newsworthy. The network has also filed a countersuit, invoking New York’s anti-SLAPP law, which protects free speech on matters of public interest.

Depositions Dispute

At Thursday’s hearing, Smartmatic pushed to depose Fox Corp. board members Chase Carey and Roland Hernandez, arguing they attended key meetings where decisions were made about election coverage. Smartmatic has already deposed other prominent figures, including Fox founder Rupert Murdoch, Executive Chair Lachlan Murdoch, and former House Speaker Paul Ryan.

Fox attorney Devin Anderson opposed the request, stating that Carey and Hernandez likely had no additional relevant information. Judge Cohen sided with Fox, denying Smartmatic’s bid to expand its deposition list.

Larger Legal Landscape

Smartmatic’s lawsuit is part of a broader reckoning for media outlets that aired election fraud claims following the 2020 presidential election.

• Fox Settled with Dominion: In April 2023, Fox News agreed to pay $787 million to Dominion Voting Systems, another election technology company, to resolve a defamation lawsuit over similar claims.
• Settlements with Newsmax and OANN: Smartmatic recently settled defamation lawsuits against conservative networks Newsmax and One America News Network (OANN) for undisclosed amounts.

The outcome of Smartmatic’s case against Fox could further shape legal precedents on media accountability and defamation in the context of highly charged political controversies.

Moving Forward

Smartmatic attorney Erik Connolly expressed determination after the hearing, stating the company would continue seeking evidence to demonstrate that Fox executives “controlled the disinformation spread by Fox News.” Fox’s legal team remains firm in its defense, emphasizing its right to report on public allegations.

As both sides prepare for trial, the case highlights the tension between journalistic freedom and responsibility, particularly when reporting on contentious political issues. The court’s rulings on access to documents and depositions will likely influence the trajectory of the case.

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