Media Mogul Faces Intense Legal Scrutiny In Voting Technology Dispute

Person using touchscreen voting machine in polling booth.

Rupert Murdoch’s media empire faces a legal storm as voting technology company Smartmatic targets the mogul in its $2.7 billion defamation lawsuit against Fox News.

At a Glance

Smartmatic is suing Fox News for $2.7 billion over 2020 election fraud claims
Lawyers want to question Murdoch about his family trust changes
Fox News argues it was engaging in journalism, not defamation
The case follows Fox’s $787.5 million settlement with Dominion Voting Systems
Murdoch’s media empire succession is being decided in a Nevada probate court

Smartmatic Takes Aim at Fox News and Murdoch

In a high-stakes legal battle, voting technology company Smartmatic is pressing forward with its $2.7 billion defamation lawsuit against Fox News. The company’s legal team is now setting its sights on media mogul Rupert Murdoch, seeking to question him about recent changes to his family trust and their potential impact on Fox News’ editorial decisions.

Smartmatic’s attorneys argue that Murdoch’s efforts to modify his family trust, which are being handled in a sealed Nevada probate court, could reveal crucial information about Fox Corp.’s involvement in the network’s coverage of the 2020 election. This legal maneuver comes in the wake of Fox News’ $787.5 million settlement with Dominion Voting Systems over similar election fraud claims.

Fox News is being sued in a $1.6 billion defamation lawsuit by Dominion Voting Systems, which alleges the company knowingly spread false claims about their voting machines during the 2020 election.@stephgosk reports on Rupert Murdoch’s deposition, according to court documents. pic.twitter.com/OEnoDkmTn4

— NBC Nightly News with Lester Holt (@NBCNightlyNews) March 1, 2023

Fox News Defends Its Position

Fox News maintains that its coverage of election fraud allegations made by then-President Trump’s attorneys was an act of journalism, not defamation. The network’s lawyer, K. Winn Allen, has pushed back against Smartmatic’s attempts to probe into Murdoch’s trust arrangements, stating that it “has nothing at all to do with” the defamation case and is “not appropriate” for questioning.

“If they were to change the direction and move [Fox News] into the direction of a CNN format, or go down the middle, it will lose its identity, lose viewers and lose revenues,” said Joe Peyronnin, a former network news executive.

In response to Smartmatic’s legal action, Fox News has taken the offensive by countersuing the company, alleging a violation of New York law against baseless lawsuits. This aggressive stance underscores the network’s determination to defend its journalistic practices and editorial decisions.

The Murdoch Empire’s Succession Drama

The legal challenges facing Fox News are unfolding against the backdrop of a complex succession battle within the Murdoch family. Rupert Murdoch’s desire to amend his trust to give full control to his eldest son, Lachlan, has met opposition from his three eldest siblings. This family dispute is being settled in a confidential probate court in Reno, Nevada, with potential far-reaching consequences for the future of Fox News and the broader Murdoch media empire.

“It’s important to note that Lachlan’s politics are far more conservative than his father,” observed Hollywood Reporter special correspondent Lachlan Cartwright, highlighting the potential implications for Fox News’ editorial direction under new leadership.

The outcome of this family trust battle could significantly impact the network’s future, especially given the divergent views among Murdoch’s children regarding Fox News’ editorial stance. James Murdoch, in particular, has been critical of the network’s direction, referring to some of its content as “lies.”

Implications for Fox News and Media Landscape

As these legal and familial dramas unfold, the future of Fox News hangs in the balance. The network has already made significant changes, including the high-profile ousting of Tucker Carlson. However, any substantial shift in editorial direction risks alienating its core viewership and potentially impacting its revenue stream.

The resolution of both the Smartmatic lawsuit and the Murdoch family trust dispute will likely have profound implications not just for Fox News, but for the broader media landscape and the way news organizations cover contentious political events. As the legal proceedings continue, all eyes remain on Rupert Murdoch and the future of his influential media empire.