Fox News (NASDAQ: FOXA) and voting-machine company Dominion Voting Systems will square off on Tuesday as opening arguments are set to begin in Dominion’s defamation lawsuit against Fox News. This lawsuit accuses Fox News of spreading the falsehood that Dominion rigged the 2020 election.
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Furthermore, Dominion has alleged that in order to boost its ratings, Fox News “intentionally and falsely” blamed the company for then President Donald Trump’s loss to President Joe Biden stating that Dominion meddled with the vote tallies.
Fox has maintained that its statements made on-air about Dominion are protected by the First Amendment, which protects the freedoms of speech and press. The network has argued that Dominion’s suit does not indicate that Fox’s claims had “actual malice,” a requirement to meet the legal standard for defamation.
This case has grabbed the spotlight as it has led to the release of many private messages and testimony from top Fox News figures including Fox Corp. Chairman Rupert Murdoch and opinion host Tucker Carlson.
While the trial is expected to last six weeks, both Dominion and Fox have clashed on how much money is at stake with Dominion seeking $1.6 billion in damages and Fox claiming that Dominion has lowered its damages claim from the original $1.6 billion.
The pre-trial hearings seem to have gone Dominion’s way after Judge Eric Davis ruled last month that, “The evidence developed in this civil proceeding demonstrates that is CRYSTAL clear that none of the Statements relating to Dominion about the 2020 election are true.”
Analysts are cautiously optimistic about FOXA stock with a Moderate Buy consensus rating based on four Buys and seven Holds.
