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MANHATTAN (CN) — The New York state judge overseeing Smartmatic’s defamation case against Fox News ruled from the bench Thursday that Smartmatic doesn’t have to turn over documents related to separate criminal charges accusing three of its executives of bribing a former Philippines election official.
Florida-based Smartmatic filed its $2.7 billion defamation lawsuit against Fox News in February 2021 accusing the right-wing news organization of pushing false claims that the voting technology company interfered in the 2020 election.
In August, federal prosecutors brought a bribery indictment against Smartmatic executives, including co-founder Roger Piñate, claiming they funneled $1 million to Juan Andres Donato Bautista, the former chairman of the Philippines Commission on Elections, to secure the country’s business. Smartmatic itself was not charged.
Fox claimed it was entitled to documents related to customer concerns after the indictment, and whether Smartmatic’s business took a hit. During Thursday’s hearing, a Fox attorney said the indictment was “plainly and obviously related to their going forward lost profits.”
“As of August, governments will have to take into account the risks of doing business with a company accused of serious corruption by the U.S. Department of Justice,” said Brad Masters, an attorney with Kirkland Ellis.
Smartmatic disagreed that the indictment was relevant to its defamation suit against Fox. “We’re still here because there’s merely an allegation which is probative of nothing,” said Caitlin A. Kovacs, an attorney with Benesch Friedlander representing Smartmatic.
She added that Smartmatic has already provided Fox with documents related to the indictment’s effect on its business and facts about the charges.
“What they would like to do is not only uncover everything that has been given to the Department of Justice,” Kovacs said, “but also more information about underlying allegations so they can stand up here and play prosecutor.”
New York Supreme Justice David Cohen agreed with Smartmatic. “My finding today is that the new facts do not change the outcome,” he said.
In a statement, Smartmatic attorney Erik Connolly praised the decision.
“We are pleased the Court rejected Fox’s motion seeking discovery on an issue that has nothing to do with Fox’s conduct and the damage from the lies it spread about Smartmatic and its role in the 2020 election,” Connolly said.
Cohen also denied Smartmatic’s request to question two Fox board members Chase Carey and Roland Hernandez. Smartmatic argued that the two attended meetings relevant to the case.
But the judge found Smartmatic failed to adequately demonstrate the board members’ relevance.
Fox filed counterclaims against Smartmatic, accusing the company violating a New York law against suits aimed at impeding public participation and criticism on public issues. Smartmatic has settled similar lawsuits against other conservative news outlets, including One America News Network and Newsmax.
Fox News meanwhile settled for $787 million last year with Dominion Voting Systems, another voting technology company that sued the conservative network for stoking conspiracy theories during the 2020 election.
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