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ABC News
ABC News
Business
North America correspondent Barbara Miller and Emilie Gramenz in Delaware, and Lucy Sweeney

Fox News is being sued for defamation over its 2020 election coverage. The case could shake up media law and the Murdoch empire

Fox is being taken to court over airing false claims that the 2020 election was "stolen" from Donald Trump. (AP: John Locher)

The stage is set in Wilmington, Delaware, for a high-stakes legal drama pitting media giant Fox against a voting machine company over false claims its machines rigged the 2020 presidential election.

Dominion Voting Systems, which makes machines for casting and counting ballots as well as software for election officials to track results, is suing Fox News and its parent company Fox Corporation for $US1.6 billion ($2.4 billion).

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