A New York appeals court has ruled that media company Fox Corporation (FOXA) must face a $2.7 billion defamation lawsuit filed by Smartmatic, a voting technology company. The lawsuit alleges that Fox News, an American cable news channel and media company owned by Fox Corporation, aired false claims about Smartmatic’s involvement in rigging the 2020 U.S. presidential election in favor of Joe Biden. The court’s decision clears the way for the lawsuit to proceed to trial.
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Smartmatic’s Claims Against Fox News
Smartmatic accuses Fox News of spreading false information that has damaged its reputation and business. The company claims that Fox News hosts and guests wrongly linked Smartmatic to election fraud, leading to public distrust and financial harm.
Meanwhile, Fox News denies the allegations, asserting that its coverage was protected under the First Amendment. The network argues that Smartmatic’s lawsuit is an attempt to limit free speech.
Ongoing Legal Battles in the Media Industry
Smartmatic’s lawsuit is part of a broader effort by election technology companies to combat misinformation. By taking legal action, Smartmatic is standing up against false claims that can harm their business and the trust in the election process. In 2023, Fox News settled a similar defamation case with Dominion Voting Systems for $787.5 million.
These legal actions underscore the ongoing tension between media freedom and accountability in the digital age.
Is FOXA a Good Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on FOXA stock based on eight Buys and eight Holds assigned in the past three months, as indicated by the graphic below. After a 62% gain in its share price over the past year, the average FOXA price target of $48.07 per share implies 1.84% downside potential.
