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The Price of Falsehood

Saturday, 08 November 2025 01:07

Summary

In the spring of 2023, a legal confrontation that had been brewing since the contentious 2020 US presidential election reached a dramatic and costly conclusion.2 Just as a landmark defamation trial was set to commence, Fox News agreed to a settlement with Dominion Voting Systems, paying an historic sum of $787.5 million.1,9 The case revolved around the network's broadcasting of baseless conspiracy theories alleging that Dominion's voting machines had been manipulated to steal the election.1,3 Pre-trial discoveries unearthed a trove of internal communications, revealing that many of Fox News's most prominent executives and on-air personalities were privately aware that the claims they were airing were false.1,20 The settlement, one of the largest in media defamation history, allowed the network to avoid a public trial that would have seen its biggest stars and its chairman, Rupert Murdoch, testify under oath.1,7 While Fox News acknowledged a court ruling that found certain claims about Dominion to be false, it was not required to issue an on-air apology.1,15 The resolution underscored the profound financial and reputational consequences of disseminating misinformation and raised critical questions about media accountability in a polarised era.14,15 The network's legal troubles are not over, as it still faces a similar, larger lawsuit from another voting technology company, Smartmatic.15

An Abrupt End in Wilmington

On 18 April 2023, the stage was set in a Delaware Superior Court for what was anticipated to be one of the most significant media trials in American history.1,5 A jury had been selected, and opening statements were moments away in the $1.6 billion defamation lawsuit brought by Dominion Voting Systems against Fox News.2,9 The case, filed in March 2021, accused the network of knowingly broadcasting false and damaging claims that its voting machines were used to rig the 2020 presidential election.1,11 The trial was expected to last up to six weeks and feature testimony from Fox News's most recognisable on-air personalities and its highest-ranking executives, including chairman Rupert Murdoch.5,7 Instead, after an unexpected delay of several hours that fuelled intense speculation, Judge Eric M. Davis entered the courtroom to announce that the parties had resolved their case.7,14 Fox News had agreed to pay Dominion $787.5 million, a staggering figure that ranks among the largest-ever settlements in a US defamation case.1,9 In a statement, Fox News acknowledged the court's prior rulings which found certain claims about Dominion to be false.11,13 The network expressed hope that the amicable resolution would allow the country to move forward.13 Dominion's CEO, John Poulos, stated that Fox had admitted to telling lies that caused enormous damage to his company and its employees.9,14 The settlement, however, did not require Fox News to apologise on-air for broadcasting the falsehoods.1,15

The Genesis of the Allegations

In the weeks following the November 2020 presidential election, a torrent of unsubstantiated claims of widespread voter fraud emerged.3,11 Fox News became a primary platform for amplifying these theories, particularly those targeting Dominion Voting Systems, a company whose technology was used in 28 states during the election.3 Guests on the network, including attorneys Sidney Powell and Rudy Giuliani, repeatedly made baseless allegations.1,3 These included claims that Dominion was founded in Venezuela to rig elections for Hugo Chávez, that its software could switch votes from one candidate to another, and that it had paid kickbacks to government officials.2 These statements were broadcast across various Fox News and Fox Business programmes hosted by prominent figures such as Maria Bartiromo, Lou Dobbs, Sean Hannity, and Jeanine Pirro.1,4 Federal and state officials found no evidence to support any claims that voting systems had deleted or changed votes in the 2020 election.3 Dominion argued that by giving these falsehoods a prominent platform, Fox News lent them an air of credibility they did not deserve, causing severe harm to the company's reputation and business.3,14 The lawsuit, filed in Delaware where both companies are incorporated, contended that Fox News either knew the statements were false or acted with reckless disregard for the truth.2,5

A Mountain of Damning Evidence

The strength of Dominion's case became overwhelmingly apparent during the pre-trial discovery phase.1 A vast collection of internal Fox News communications, including text messages, emails, and deposition testimony, was made public in a series of court filings.1,17 This evidence revealed a stark contrast between what the network's stars and executives were saying privately and what they were broadcasting to millions of viewers.14 In a text message to fellow host Laura Ingraham, Tucker Carlson wrote of Sidney Powell, "Sidney Powell is lying."3 Sean Hannity stated in his deposition that he "did not believe it for one second" when Powell asserted on his show that Dominion machines had been rigged.1 Laura Ingraham, in a message exchange with Carlson and Hannity, referred to Powell as "a bit nuts".5 The communications also showed a deep concern among Fox personnel about losing viewers to rival conservative networks like Newsmax, which were more aggressively promoting the stolen election narrative.3 Following the network's correct but controversial call of Arizona for Joe Biden on election night, executives worried about audience backlash.20 Fox News CEO Suzanne Scott told Lachlan Murdoch that the Arizona call "was damaging but we will highlight our stars and plant flags letting the viewers know we hear them and respect them."5 Perhaps most critically, Fox Corporation chairman Rupert Murdoch acknowledged in his deposition that some of his network's most prominent hosts had endorsed the false narrative of a stolen election.16 He admitted he could have stopped guests like Giuliani and Powell from appearing on the network's programmes, but did not.16 Murdoch also conceded that the claims were "terrible stuff damaging everybody".16

The 'Actual Malice' Standard

To win its case, Dominion had to meet the high legal bar for defamation of a public figure in the United States, a standard established by the landmark 1964 Supreme Court case *New York Times Co. v. Sullivan*.1,3 This required proving that Fox News acted with "actual malice," meaning the network either knew the statements it aired were false or acted with a reckless disregard for whether they were true or not.3,5 Fox News's defence rested on the argument that it was merely reporting on newsworthy allegations made by a sitting president and his legal team, a right protected by the First Amendment.1,3 However, this position was significantly weakened by the pre-trial rulings of Judge Eric M. Davis.21 On 31 March 2023, Judge Davis granted a summary judgment in favour of Dominion on a key point, ruling that it was "crystal clear that none of the statements relating to Dominion about the 2020 election are true".1 This meant the central question for the jury at trial would not be whether the claims were false, but whether Fox News had acted with actual malice when it broadcast them.1,3 The judge also rejected Fox's argument that it was protected by a "neutral report privilege," which can shield journalists who report newsworthy allegations.21 The mountain of internal communications showing that Fox personnel privately disbelieved the very claims they were airing provided Dominion with powerful evidence to argue that the "actual malice" standard had been met.2,12

The Aftermath and Lingering Consequences

The $787.5 million payment represented a significant financial blow to Fox Corporation, which held about $4 billion in cash at the time of the settlement.1,18 The sum effectively erased more than half of the company's profits from the previous year.18 In the immediate aftermath, Fox News's stock value saw a decline.18 Less than a week after the settlement, on 24 April 2023, Fox News announced the abrupt departure of its highest-rated prime-time host, Tucker Carlson.1 While the network has not officially linked his firing to the Dominion case, it came shortly after revelations from a separate lawsuit filed by a former producer, Abby Grossberg, who alleged a toxic work environment on his show and claimed she was pressured to give misleading testimony in the Dominion depositions.1,22 Carlson himself has claimed he was taken off the air as a condition of the settlement, a charge that both Fox News and Dominion have denied.22 The network's legal challenges are far from over.15 It still faces a $2.7 billion defamation lawsuit from another voting technology company, Smartmatic, which alleges it was similarly maligned by false election claims on the network.8,15 Rupert Murdoch was deposed in that case in November 2023.8 Fox also faces lawsuits from shareholders who argue the company's board breached its duties by allowing the network to broadcast falsehoods that damaged the company.15

Conclusion

The settlement between Dominion Voting Systems and Fox News stands as a landmark event in the intersection of media, law, and politics.1 By securing a payment of $787.5 million, Dominion achieved a significant measure of accountability for the reputational and financial harm it suffered.1,14 The case exposed a profound disconnect between the private knowledge of a major media organisation and its public pronouncements, revealing a willingness to broadcast information that its own executives and hosts knew to be false.1,20 While the settlement averted a trial that would have provided a fuller public airing of the network's internal workings, the evidence unearthed during discovery offered an unprecedented view into the decision-making processes at Fox News.17 The outcome demonstrated that even with the robust protections for speech afforded by the First Amendment, there are tangible and severe consequences for defamatory falsehoods.9 Yet, the absence of a mandated on-air retraction or apology left some observers questioning the ultimate impact on the audience that consumed the misinformation.15 As Fox News continues to navigate further legal challenges, including the substantial lawsuit from Smartmatic, the Dominion case serves as a powerful testament to the high price of propagating baseless claims in a deeply divided information landscape.8,15

References

  1. Dominion Voting Systems v. Fox News Network - Wikipedia

    Provides a comprehensive overview of the lawsuit, including the key players, the settlement amount, the legal standard of 'actual malice', the timeline of events, and the details of the pre-trial rulings and evidence. It is a foundational source for the entire article.

  2. Understanding the Dominion v. Fox News Defamation Lawsuit - Nolo

    Offers a clear legal explanation of the case, detailing the elements of defamation, the specific false statements at issue, the 'actual malice' standard, and why the case was heard in Delaware. It helps contextualise the legal framework of the lawsuit.

  3. The $1.6 Billion Dominion v. Fox News Trial, Explained | WSJ - YouTube

    This video explainer provides background on the 2020 election claims, summarises Dominion's and Fox's core arguments, and highlights key pieces of evidence like Tucker Carlson's text messages. It is used to describe the initial claims and the financial motivations alleged by Dominion.

  4. Fox News anchor Maria Bartiromo is front and center in Dominion's defamation suit

    This article details the role of specific Fox News hosts, particularly Maria Bartiromo, in the lawsuit. It provides specific examples of the claims aired and the internal concerns raised about her reporting, which supports the section on the genesis of the allegations.

  5. Dominion Voting v. Fox News lawsuit: Who's who in the high-stakes defamation trial?

    Identifies the key individuals involved in the case, from Fox News hosts and executives to Dominion's leadership. It provides specific details from depositions and internal communications, such as private messages between hosts, which are crucial for the 'Mountain of Damning Evidence' section.

  6. IN THE SUPERIOR COURT OF THE STATE OF DELAWARE US DOMINION, INC., DOMINION VOTING SYSTEMS, INC., and DOMINION VOTING SYSTEMS CO - Delaware Courts

    This is the official court document for the summary judgment ruling. It is the primary source for Judge Eric M. Davis's finding that the statements about Dominion were false and defamatory per se, a critical turning point in the case discussed in the 'Actual Malice' section.

  7. Dominion and Fox News reach $787.5 million settlement in defamation case - YouTube

    This news report captures the immediate aftermath of the settlement announcement, including statements from Dominion's legal team and the judge. It is used to describe the scene at the courthouse and the abrupt end to the anticipated trial.

  8. Rupert Murdoch deposed in Smartmatic election lawsuit against Fox News - YouTube

    Provides information on the ongoing $2.7 billion lawsuit by Smartmatic against Fox News, establishing that the network's legal troubles did not end with the Dominion settlement. It also confirms Rupert Murdoch's deposition in this second case.

  9. Fox News agrees to pay Dominion $787.5 million in defamation settlement - YouTube

    This broadcast provides the exact settlement figure and includes direct quotes from Dominion's CEO John Poulos and lawyer Justin Nelson immediately after the settlement was announced. It is used to cite the settlement amount and the immediate reactions.

  10. Tucker Carlson - Wikipedia

    Provides background information on Tucker Carlson, his role at Fox News, his show's ratings, and his departure from the network, which is relevant to the 'Aftermath' section.

  11. FOX News Media, Dominion Voting Systems reach agreement over defamation lawsuit

    This article from Fox News itself confirms the settlement and provides the network's official statement on the matter, which is quoted in the article.

  12. New Fox News documents released in Dominion lawsuit: Highlights - The Washington Post

    Details specific evidence from the court filings, including Rupert Murdoch's email to Suzanne Scott expressing concern that hosts like Sean Hannity and Laura Ingraham "went too far." This supports the evidence section.

  13. FOX NEWS AND DOMINION VOTING SYSTEMS REACH SETTLEMENT

    This is the official press release from Fox Corporation. It is the primary source for the company's public statement acknowledging the court's rulings and the settlement.

  14. Fox News, Dominion reach $787.5M settlement, avoiding trial in defamation case - YouTube

    This news report corroborates the settlement amount and the timing, and includes quotes from Dominion's CEO about Fox admitting to telling lies. It reinforces the details of the settlement announcement.

  15. 'Dominion wins but the public loses': Fox settlement avoids paying the highest price

    Provides analysis on the settlement's implications, noting the lack of an on-air apology and discussing the ongoing legal threats from Smartmatic and others. It is used for the 'Aftermath' and 'Conclusion' sections to discuss the broader consequences.

  16. Rupert Murdoch testified that Fox News hosts 'endorsed' stolen election narrative

    This article is a key source for the 'Mountain of Damning Evidence' section, as it reports directly on Rupert Murdoch's deposition testimony where he admitted that his hosts endorsed false claims and that he could have stopped them.

  17. Defamation suit produced trove of Tucker Carlson messages | AP News

    Details the content of Tucker Carlson's private messages that were revealed in the lawsuit, showing his private disdain for the election lies and for his colleagues. This is crucial evidence cited in the article.

  18. Dominion settlement tab may be just the start of Fox's financial woes - The Washington Post

    Provides a financial analysis of the settlement's impact on Fox Corporation, including its cash reserves, stock performance, and the fact that the settlement erases more than half of the previous year's profits. This is used in the 'Aftermath' section.

  19. New disclosure of Rupert Murdoch's role at Fox News frustrates judge in Dominion case

    This article details a key pre-trial development where Fox's lawyers were admonished for late disclosure of Rupert Murdoch's official role at Fox News, which is a relevant detail about the litigation process.

  20. Fox News hosts thought Trump's election fraud claims were 'total BS', court filings show

    This source provides direct quotes and summaries from the court filings, showing the private disbelief of Fox News hosts and executives regarding the election fraud claims. It is a primary source for the evidence of 'actual malice'.

  21. Bad rulings, overly broad discovery doomed Fox in defamation trial, outgoing CLO says

    Provides insight into Fox's legal perspective, specifically the impact of Judge Davis's pre-trial rulings that prevented the network from using certain defences, such as the 'neutral report privilege'. This is used to explain the legal context in the 'Actual Malice' section.

  22. Tucker Carlson claims in book Fox News firing was part of $787.5m settlement

    Reports on Tucker Carlson's claim that his departure was a condition of the settlement, as well as the denials from both Fox and Dominion. This is a key part of the 'Aftermath' section.

  23. IN THE SUPERIOR COURT OF THE STATE OF DELAWARE US DOMINION, INC., DOMINION ) VOTING SYSTEMS, INC., and ) DOMINION VOTING SYSTEMS

    This court document details the specific lies Dominion asserted in its filings, such as the 'election fraud lie' and the 'algorithm lie', providing precise legal context for the claims at the heart of the case.

  24. Fox Reports Quarterly $54 Million Revenue Loss From Dominion Voting Settlement - Forbes

    This article provides specific financial data from Fox's quarterly earnings report following the settlement, quantifying the immediate financial impact and loss reported by the company, which is relevant to the 'Aftermath' section.