Explained: Has Fox News lost credibility despite $787mn settlement with Dominion?

Fox News dodged the possibility of a humiliating defamation trial, following a last-minute settlement on Tuesday (April 18),but it also suffered a major blow to its reputation.The network, one of the most influential and successful in the US, agreed to a $787.5 million settlement in a lawsuit brought by voting technology manufacturer Dominion for its reporting on false election fraud charges in the 2020 election.

Analysts said the settlement was a rare example that there may be an enormous price for blatant disinformation — even for once-untouchable media giants. Fox News managed to wriggle out of what was anticipated to be a dramatic trial.

"This can be seen as a wake-up call for live broadcasters and a reminder that there really is a difference between false factual statements, and knowingly broadcasting such false information, and protected speech," Roy Gutterman, a Syracuse University professor, told AFP.

Why did Dominion sue Fox News?

In its $1.6 billion lawsuit against Fox News, Dominion claimed that the network had supported Donald Trump's baseless assertion that the company's voting equipment had been tampered with, to rig the 2020 election in Joe Biden's favour.

"The evidence will show that Dominion was a valuable, rapidly growing business that was executing on its plan to expand prior to the time that Fox began endorsing baseless lies about Dominion voting machines," said a Dominion spokesperson in a statement, as reported by NPR.

"Following Fox's defamatory statements, Dominion's business suffered enormously, and its claim for compensatory damages is based on industry-standard valuation metrics and conservative methodologies. We look forward to proving this aspect of our case at trial," added the spokesperson.

The company claimed that because of baseless rumours that Dominion's voting machines altered votes for then-President Donald Trump to his opponent, Joe Biden, in the 2020 election, its staff and offices have endured years of fatal threats.

"A loss -- and the trial process itself -- would have been much worse forFox," John Culhane, a professor at Delaware Law School at Widener University, told AFP.

"They were staring down the prospect of a parade of high-profile witnesses having to try to defend their disinformation machinery to a jury. The audio would have been replayed a thousand times, forever," he added.

Fox News' image tarnished?

Numerous internal documents from Fox News, including emails and texts, were made public by Dominion, revealing that its executives questioned Trump's assertions and even voiced contempt for the former president despite adoring him on screen.

"The stain this leaves onFoxcan't be wiped out with money," said Angelo Carusone, president of the advocacy group Media Matters, who spoke to AFP.

"The network has been completely exposed as a partisan propaganda outlet that is willing to do anything for profit and power," he added.

ALSO WATCH |Fox News settles Dominion defamation case for $787.5m

According to US media, the broadcaster will not be required to apologise or acknowledge that it disseminated false information on network programming under the terms of the settlement.

But, the bigger question looms.Will the hefty settlement be enough to deter Fox network from doing the same in the future?

"WillFox's disinformation engine be chastened? I doubt it," Gregory Miller, the co-founder of the nonpartisan, nonprofit OSET Institute, told AFP.

"It may bring about some cooling off, but I fear it will be in full gear," in the lead up to the 2024 presidential election, he added.

Experts anticipate a fiercely polarised election in 2024.

Trump is running for president for a third time and continues to be the front-runner for the Republican nomination after making the false allegation that the previous election had been rigged against him, which provoked a violent mob to attack the US Capitol on January 6, 2021.

Can Fox Newsafford the $787.5mn Dominion settlement?

The Rupert Murdoch-owned network has agreed to pay Dominion $787.5 million.Although thiswill be a substantialcompensation, Fox has escapedwhat some have called the "defamation trial of the century."

At almost $800m, it is one of the biggest ever financial settlements in a defamation case.However, it is less than half the $1.6bn ask initially put forwardby Dominion.

For context, parent firm Fox Corporation recorded net income of $1.23 billion for the most recent fiscal year.

Additionally, it has a significant cash reserve of $4 billion, as per recent company filings.

According to Forbes magazine, Rupert Murdoch and his family are estimated to be worth $17.6 billion. They are in charge of the News Corp media empire, which includes Fox News, The Times of London, and The Wall Street Journal.

Fox, however, won't be able to put the problems with its coverage of the 2020 presidential election behind them just yet.

Another electoral technology company, Smartmatic, has filed a second, similar defamation action against it and is seeking $2.7 billion.The $787.5 million payoff toDominion might only be thethe tip of the iceberg for Fox News.

(With inputs from agencies)

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