Trump’s unwillingness to believe his 2020 loss prompted him to encourage supporters to head to the US Capitol, which they stormed.Credit: Getty Images
Laster cautioned that the investor victory “does not mean that the plaintiffs will prevail at trial” but rather that “their claims have some merit”.
More worryingly, in light of the recent family battle for control of Murdoch’s controlling shareholding in both Fox and News Corp, Laster found that it is not Rupert who has the most to fear from the lawsuit.
He noted that Lachlan Murdoch – the heir apparent – attended daily meetings with Fox executives as the controversy played out and said: “If anything, the claim against Lachlan is stronger.”
According to a CNN report, Smartmatic has already sought access to court documents from Rupert Murdoch’s failed bid to alter an irrevocable family trust.
His plan was to ensure Lachlan retained control after his father’s death – rather than splitting control with his three eldest siblings – and ensuring News Corp and Fox retained their conservative positioning.
Smartmatic is hoping the inference of family interference in editorial matters might aid its case. If successful, it could mean details of the family battle will be made public for the first time.
‘Rupert and Lachlan Murdoch ordered a hit.’
Smartmatic’s lawyer J. Erik Connolly
Fox did not respond to requests for comment for this story, but has previously said it was engaging in journalism with its reporting on the election, and said Smartmatic’s claims are “intended to chill First Amendment freedoms”. This is a reference to the First Amendment of the US Constitution giving a right to free speech and press freedom.
Smartmatic declined to comment, but its lawyers have previously argued in a New York courtroom that Fox Corp should not escape liability for what happened at Fox News, saying the two Murdochs played a central role in the events which led to the defamation suit.
“Rupert and Lachlan Murdoch ordered a hit. They saw the ratings take a huge dive, they saw their stock price taking a dive. So Rupert and Lachlan Murdoch said, ‘Oh, if we aren’t embracing this disinformation, it’s going to be a problem’,” Smartmatic’s lawyer, J. Erik Connolly, told the court.
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“We have extensive emails … discussing that they have a gameplan to pivot. The pivot is the disinformation. It’s not a coincidence.”
The moment of truth for Smartmatic investors – including LinkedIn billionaire Reid Hoffman, who injected funding last year to help with its legal battle against Fox – could come as a trial date nears.
It was on the eve of the 2023 trial with Dominion that Fox agreed to pay $US787.5 million to avoid the matter going to court. It was the largest-ever out-of-court defamation settlement.
Dominion had been seeking $US1.6 billion from Fox.
“This settlement reflects Fox’s continued commitment to the highest journalistic standards. We are hopeful that our decision to resolve this dispute with Dominion amicably, instead of the acrimony of a divisive trial, allows the country to move forward from these issues,” Fox said at the time.
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