Fox News braces for more turbulence as second defamation lawsuit advances

As Rupert Murdoch’s Fox Corporation battles to contain the Dominion lawsuit scandal that has engulfed its top executives and stars, another crisis is building in the wings that has the potential to cause further turbulence for the media empire.

Smartmatic USA Corporation’s lawsuit against Fox News has attracted only a fraction of the attention garnered by the legal action of Dominion Voting Systems. Yet both firms are suing Fox for defamation related to its coverage of Donald Trump’s stolen-election lie, and both pose a serious threat to Fox’s finances and reputation.

In fact, on paper Smartmatic’s suit appears to be the more dangerous. It’s demanding damages of $2.7bn, compared with Dominion’s $1.6bn.

So far, attempts by Fox lawyers to have the Smartmatic case dismissed have fallen on stony ground. Last week the New York state supreme court in Manhattan gave the green light for the case to proceed against Fox News, the Fox Business host Maria Bartiromo, the former business anchor Lou Dobbs and Trump’s former lawyer Rudy Giuliani.