The lawyer representing voting technology company, Smartmatic, says Rupert and Lachlan Murdoch are key to the $US2.7 billion ($4.05 billion) case they have brought against Fox News and Fox Corporation.
The US cable news network is accused of spreading disinformation in the aftermath of the 2020 presidential election, in support of Donald Trump's false claims the election was stolen.
"Rupert and Lachlan Murdoch, from our perspective, are front and centre to the decision making that was done at Fox Corporation that allowed and encouraged this type of disinformation," Erik Connolly told 7.30.
Smartmatic is a voting technology company that operates across the globe including in Australia. It filed a suit against Fox and a number of its presenters in 2021 after the media organisation broadcast claims that it was part of a widespread conspiracy to rig the 2020 election, in concert with Dominion, another voting technology company.
Last week Dominion settled their case against Fox, receiving $US787.5 million in damages.
Mr Connolly said his client's case alleges Rupert and Lachlan Murdoch were part of the decision making at the network during the heated post-election period in the US.
"There are definitely allegations that both Dominion has made, and that Smartmatic has made that these two individuals were directing traffic here," he told 7.30.
"And it's difficult to imagine something this sizeable occurring at Fox News that was not getting the attention and the direction of the two principals for Fox Corporation.
"What Fox published was twofold. One, Smartmatic and Dominion conspired together to rig the election … And the second main message was Dominion machines using Smartmatic software rigged the 2020 election and switched votes in favour of Joe Biden."
Mr Connolly commented on the level of damages the company is seeking against Fox. "When you look at the damage done to Smartmatic, I have a company that before this disinformation campaign was conducting and handling elections all over the world in five continents in over 50 countries," he said.
"So, the damages in this case is a very simple exercise: What was the value of my company before this disinformation campaign took place? And what's the value of that company today as a result of that … Because nothing can do more damage to a company like Smartmatic than what these defendants said."
Damaging democracy to win back audience
In statement Fox said, "We will be ready to defend this case surrounding extremely newsworthy events when it goes to trial, likely in 2025.
"As a report prepared by our financial expert shows, Smartmatic's damages claims are implausible, disconnected from reality, and on its face intended to chill First Amendment freedoms."
But Mr Connolly claims evidence will show that Fox deliberately broadcast false accusations of electoral fraud in a bid to recover audience who had deserted the network.
"This was done in order to win back an audience indeed because of fear about competition from emerging news organisations. And what you saw on the Dominion evidence was very consistent with what we have alleged," he said.
Material that emerged during the Dominion case suggests viewers quit the network after Fox correctly called the key state of Arizona for Mr Biden, frustrating Mr Trump's winning narrative.
Mr Connolly alleges the network knew what it was doing in promoting Mr Trump's lawyers and advisers making wild claims on air.
"I have a significant amount of evidence showing that Fox knew what they were saying wasn't true," he said.
Undermining democracy worldwide
Smartmatic played a small role in the 2020 presidential election.
"My client Smartmatic was in LA County. They provided election services during the 2020 election in LA County and LA County only," Mr Connolly said.
"And yet, somehow, under this narrative that Fox was spinning, we rigged a national election, and we were switching votes, in states and in jurisdictions where we weren't even participating. That is an extraordinary degree of recklessness."
The effects of that disinformation campaign, Mr Connolly claims, went far beyond the United States.
"This disinformation and how it undermines the trust in democracy has a real effect, a real negative effect on democracy and voting all over the world.
"This is one of the most catastrophic events for democracy and the belief and integrity of elections that you could imagine."
With the 2024 presidential election looming, Mr Connolly said the implications of Fox's promotion of the "Big Lie" will be felt when voters head to the polls next year.
"You still see situations where people are running away from election technology, thinking that there's a risk that their vote won't be counted," he said.
"And so there's a fear factor out there. And so it has not gone away at all. And as we move forward into the 2024 election, which is around the corner, I expect that it's just going to intensify."
Zero societal interest
Fox claims it was merely publishing newsworthy information about the President's claims the election was stolen.
Mr Connolly said the courts in the US have dismissed that concept, saying there are certain types of speech that have zero societal interest.
"One category of speech that courts have said have no societal interest and are not deserving of constitutional protection is an intentional lie. We're talking about an intentional lie here," he said.
The case is still in the discovery stage, headed to trial in 2025.
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