Fox News and Dominion Voting Systems reached a last-minute agreement on Tuesday, just as their defamation trial was about to begin, with Fox agreeing to pay over $787 million. This settlement concludes a significant two-year legal conflict that severely impacted the network's reputation. The $787.5 million settlement marks the largest known defamation payout by a media company in U.S. history.
The agreement was revealed shortly after the jury was sworn in at the Delaware Superior Court. Speculation about a settlement grew when the court proceedings were unexpectedly paused for nearly three hours after a lunch break, allowing time for the parties to finalize their deal.
Judge Eric Davis informed the court that the case had been resolved and dismissed the jury, acknowledging their role in encouraging the settlement. He praised the legal teams and concluded what was anticipated to be a major media trial before it even started.
Dominion's attorney, Justin Nelson, described the settlement as a triumph for truth and democracy, emphasizing the importance of a commitment to facts for the future of democracy. Fox News acknowledged the court's findings that certain claims about Dominion were false but will not have to admit on-air that it broadcasted falsehoods about the company.
The settlement amount is about half of the $1.6 billion Dominion initially sought, yet it is significantly higher than the company's valuation in 2018 and its 2021 annual revenue. This resolution prevents the case from going to trial, sparing Fox News executives and hosts from testifying about their coverage of the 2020 election, which included false claims of voter fraud.
Notable figures like Rupert Murdoch, his son Lachlan, and hosts Sean Hannity and Tucker Carlson were on the witness list. Internal communications revealed during the case showed that these individuals privately dismissed the vote-rigging claims as baseless, despite airing them.
The settlement avoids a lengthy trial that could have further exposed Fox's internal contradictions. Fox stated that the settlement reflects its dedication to high journalistic standards and expressed hope that resolving the dispute amicably would help the nation move past these issues.
Fox News and its parent company, Fox Corporation, maintain that they did not defame Dominion and view the case as an unfounded challenge to press freedoms under the First Amendment. Speculation about a settlement had intensified after a one-day trial delay was announced.
The jury, consisting of six men and six women, was prepared for the trial but was instead informed by Judge Davis that their presence had been crucial in reaching a settlement. Dominion representatives framed the settlement as a victory for democracy and truth.
Dominion CEO John Poulos stated that Fox admitted to spreading falsehoods that caused significant harm to Dominion and its stakeholders. Although this case is resolved, Fox News still faces another defamation lawsuit from Smartmatic, another voting technology firm, which is in the discovery phase.
Dominion continues to pursue legal action against other right-wing media outlets and Trump allies, who deny any wrongdoing.