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Appeals Court Lets Fox Probe Smartmatic Indictment but Refuses to Pause Defamation Suit

The decision positions Fox to argue Smartmatic’s losses stem from its own legal troubles rather than Fox’s broadcasts.

Overview

  • New York’s Appellate Division, First Department on Thursday denied Fox’s requests to stay the case and to vacate parts of a 2025 report, while granting limited new discovery tied to the DOJ’s superseding indictment and allegations involving Los Angeles County and Venezuela.
  • The added discovery targets whether the criminal case hurt Smartmatic’s business, which goes to damages, as the defamation suit itself continues toward trial because the court declined to halt proceedings.
  • Fox said it was pleased to obtain discovery on the indictment and Los Angeles allegations, arguing this could show Smartmatic’s financial losses were driven by its own legal exposure.
  • Smartmatic said the ruling blocks Fox’s latest delay effort and keeps the $2.7 billion claim on track for a jury to hear, reinforcing the company’s focus on reputational harm from 2020-election coverage.
  • Coverage split along familiar lines, with right-leaning outlets stressing Fox’s discovery win and left-leaning outlets emphasizing the court’s refusal to stop the case, as context from the Dominion settlement and prior Smartmatic settlements heightens the stakes.