WEBVTT - Fox Facing $2.7 Billion Defamation Suit Next

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<v Speaker 1>Foxmers did apologize. We got them to be held accountable

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<v Speaker 1>and we got them to pay us a historic settlement amount.

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<v Speaker 1>I believe it is the largest settlement in the history

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<v Speaker 1>of any defamation suit by a factor of several.

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<v Speaker 2>But will the nearly eight hundred million dollars settlement between

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<v Speaker 2>Fox News and voting machine company Dominion remain the largest

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<v Speaker 2>defamation settlement and historic as attorney did Vita Brooks said.

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<v Speaker 2>Next up is Smartmatic, another voting machine company, suing Fox

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<v Speaker 2>in a very similar defamation case over false twenty twenty

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<v Speaker 2>election claims. Only Smartmatic is asking for two point seven

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<v Speaker 2>billion dollars. That's one point one billion more than Dominion

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<v Speaker 2>was suing. Four Joining me is an expert in defamation,

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<v Speaker 2>David Corsenic of Miller Corsenic Summer's Raymond David. Outside of

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<v Speaker 2>the monetary amount, how significant is this settlement.

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<v Speaker 3>It's worth considering what the impact is of this settlement

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<v Speaker 3>on the law on Fox News, on democracy propaganda from

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<v Speaker 3>an historical point of view, and what it will do

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<v Speaker 3>for libel claiming in the future. So on the issue

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<v Speaker 3>of impact on libel law, I think it will have

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<v Speaker 3>no immediate impact, but it probably affirms the viability and

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<v Speaker 3>the soundness of New York Times versus Sullivan and the

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<v Speaker 3>actual malice standard, because it shows that that standard works. Second,

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<v Speaker 3>as far as the impact on Fox News going forward,

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<v Speaker 3>hard to know. I don't think that it will change.

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<v Speaker 3>They are reporting because in a certain way, Fox is

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<v Speaker 3>riding a tiger and can't get off it. But the

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<v Speaker 3>recent shift with Ugar Carlson is interesting, but may or

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<v Speaker 3>may not be indicative of anything on that point. But

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<v Speaker 3>another thing to keep in mind here is that while

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<v Speaker 3>Fox dead in the settlement that they acknowledge the judge's decision,

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<v Speaker 3>the judge's decision has acted more force here than just that.

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<v Speaker 3>It's a factual ruling and a legal ruling on falsehood

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<v Speaker 3>that's legally binding on Fox going forward and legally binding

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<v Speaker 3>on them well collateral estopol as to any plaintiff that

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<v Speaker 3>goes after them based on related facts. The second, there

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<v Speaker 3>are obviously these other inbound suits that are taking place.

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<v Speaker 3>There is the Smartmatic case that's really advancing kind of

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<v Speaker 3>feverishly while we were paying attention to dominion, But it's

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<v Speaker 3>the huge numbers of filings and decisions in that lawsuit,

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<v Speaker 3>and that's advancing. There's evidence on the public record that

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<v Speaker 3>was extracted in the course of the dominion case that

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<v Speaker 3>will be accessible and usable by anyone who makes claims

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<v Speaker 3>against Fox, not just pr wise but legally obviously. Then

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<v Speaker 3>there's also careholder actions that are now underway, and they

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<v Speaker 3>may be more significant than We've really still to evaluate

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<v Speaker 3>their impact, but they're quite serious because they are shareholder

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<v Speaker 3>claims about the irresponsibility of Fox promoting these fictions when

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<v Speaker 3>it was clearly going to be to the detriment of

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<v Speaker 3>the company financially.

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<v Speaker 2>What do you think the effect of all the things

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<v Speaker 2>that came out through discovery? What the effect of that

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<v Speaker 2>will be.

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<v Speaker 3>All of the discovery that's come out is going to

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<v Speaker 3>support and fuel future reporting about Fox. And then there

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<v Speaker 3>are people who have left Fox who are having in

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<v Speaker 3>litigation with them, one in particular, who claims that Fox

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<v Speaker 3>pressured her into testifying in a way that she did

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<v Speaker 3>not wish on the dominion matter. So that is pending

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<v Speaker 3>and we'll have to see how that one plays out.

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<v Speaker 3>So those are the variety of factors that will have

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<v Speaker 3>an impact on Fox. There's just a tremendous amount of

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<v Speaker 3>blood in the water here. I think that will be

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<v Speaker 3>magnificant in terms of possibly fueling other claims that go

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<v Speaker 3>beyond just the election fraud issues, so they have to

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<v Speaker 3>be probably more cautious. And the final point I'll make

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<v Speaker 3>is that there's an historical import here, a historical analogy.

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<v Speaker 3>I think it's interesting that there's something similar going on

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<v Speaker 3>to what happened in the blacklisting cases, the libel cases

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<v Speaker 3>that were brought during the McCarthy era by those who

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<v Speaker 3>were blacklisted and called communists, and those libel case had

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<v Speaker 3>a significant impact in that they helped turn the tide

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<v Speaker 3>against the hysteria of the McCarthy period. And I would think,

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<v Speaker 3>or I understand that it may well have had an

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<v Speaker 3>impact on Justice Brandan's approach in New York Times versus Sullivan,

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<v Speaker 3>because there were some justices who wanted to completely cut

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<v Speaker 3>out the libel cause of action against any public official.

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<v Speaker 3>But Brandon fashion the Act Malice standard is a kind

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<v Speaker 3>of compromise both to protect speech strongly but also to

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<v Speaker 3>allow the libel claim to persist, probably mindful of the

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<v Speaker 3>fact that it was significant just in the prior decade

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<v Speaker 3>in terms of reversing the McCarthy tosaria. So interesting parallel there.

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<v Speaker 2>How do the judge's rulings in the dominion case help Smartmatic.

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<v Speaker 2>What does it have to prove? What doesn't it have

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<v Speaker 2>to prove?

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<v Speaker 3>Well, it has to prove that to the extent that

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<v Speaker 3>the Fox broadcasts they're attacking are different in substance from

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<v Speaker 3>the allegations made against Dominion, but they do seem to

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<v Speaker 3>be overlapping because they do relate more broadly about whether

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<v Speaker 3>or not there was any evidence at all to support

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<v Speaker 3>the election fraud claim or story. And second, there is

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<v Speaker 3>a kind of overlap between Dominion and Smartmatic in the

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<v Speaker 3>sense that Dominions machines used Smartmatic software, so that even

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<v Speaker 3>though Smartmatic chains were only used in LA and not

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<v Speaker 3>as Fox that allege in many of the swing states. Nonetheless,

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<v Speaker 3>at issue is the vote switching features of the software

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<v Speaker 3>that was used as well at Dominions, So there's a

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<v Speaker 3>lot of overlap there, and there's no question that ruling

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<v Speaker 3>by Judge Davis the Dominion case will work to the

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<v Speaker 3>advantage locked in advantage of Smartmatic, not on everything, but

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<v Speaker 3>on a lot of it. Also, keep in mind that

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<v Speaker 3>the smart Matic case is pending in New York. The

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<v Speaker 3>Dominion case was pending in Delaware, but there was no

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<v Speaker 3>question that New York law of libel and New York

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<v Speaker 3>constitutional features applied in both cases. So the law applied

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<v Speaker 3>in Delaware applies just as well here in the Smartmatic

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<v Speaker 3>case in Manhattan. And they're also and I think this

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<v Speaker 3>is interesting, is that there are sealed materials in the

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<v Speaker 3>dominion case. It could be held sealed during the pendency

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<v Speaker 3>of the case, but once the case is settled, that

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<v Speaker 3>as it is, and once it's clear that many of

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<v Speaker 3>those sealed materials were relevant to the decision rendered by

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<v Speaker 3>the court, then media organizations are going to go to

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<v Speaker 3>the court and ask that those documents be unsealed. And

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<v Speaker 3>the presumption that they should be unsealed applies more forcefully

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<v Speaker 3>after the case is over and when it's clear that

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<v Speaker 3>they were relevant to a judicial ruling.

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<v Speaker 2>I mean, what drew so much attention to the dominion

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<v Speaker 2>case was, you know, all the texts that we saw

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<v Speaker 2>and the messages from the on air host over to

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<v Speaker 2>the management Rupert Murdoch. Does Smartmatic have those same kinds

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<v Speaker 2>of texts, Well.

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<v Speaker 3>They'll be able to use all that discovery and all

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<v Speaker 3>those documents in their own case. And to the extent

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<v Speaker 3>they're overlapping issues on looks like there really are quite

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<v Speaker 3>a few. They're going to really benefit from that, They're

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<v Speaker 3>going to benefit from the evidence, they're going to benefit

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<v Speaker 3>from the ruling, and then they may have special issues

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<v Speaker 3>of their own, some of which look worse for Fox

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<v Speaker 3>than even dominion because of the la versus not having

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<v Speaker 3>machines in swing states. There's another feature here that's kind

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<v Speaker 3>of be interesting. There's a new York anti slap law

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<v Speaker 3>came into effect in November of twenty twenty, and it

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<v Speaker 3>made added procedural and substance of protections for defendants in

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<v Speaker 3>libel action, and it made for a special motion to

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<v Speaker 3>dismiss a libel claim that works very much to the

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<v Speaker 3>advantage of any defendant. And Fox, of course deployed that

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<v Speaker 3>anty slap motion that was something that didn't apply in Delaware,

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<v Speaker 3>and they still lost. Even with the added burdens that

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<v Speaker 3>the anti slap law imposes on the plaintiff marsmatic to

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<v Speaker 3>show not just that they either or not, but they

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<v Speaker 3>have to come forward and show that they have a

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<v Speaker 3>substantial basis for making that claim, and they fail to

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<v Speaker 3>do that.

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<v Speaker 2>So Fox said that smartmatics damages claims are implausible, disconnected

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<v Speaker 2>from reality, and on its face intended to chill First

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<v Speaker 2>Amendment freedoms. Does that sound a lot like claims that

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<v Speaker 2>the judge dismissed in the dominion suit.

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<v Speaker 3>Yes, you know, there's always an issue when there's a

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<v Speaker 3>product disparagement claim about the adequacy of damage pleading, the

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<v Speaker 3>specificity of those pleadings, and the ability to show causation.

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<v Speaker 3>But if the claims are really just straight libel claims,

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<v Speaker 3>corporate plantiffs still has real obstacles to proving things. Corporate

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<v Speaker 3>planteff if it points to any specific loss, is going

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<v Speaker 3>to have to show causation, and once that happens, becomes

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<v Speaker 3>more complicated for them. So yeah, damages for a human being,

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<v Speaker 3>for an individual is very different inlibel than damages for

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<v Speaker 3>a corporation. So they are hard to show. And it

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<v Speaker 3>probably would have been a complicated battle for dominion, and

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<v Speaker 3>though those of all the different parts of their case

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<v Speaker 3>that would have been perhaps the more vulnerable that would

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<v Speaker 3>have been it and that will be the case here too.

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<v Speaker 3>But you know, you do have punitives that are potentially

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<v Speaker 3>in the wings here, and those could really kick up

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<v Speaker 3>the value of the claim even if the underlying actual

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<v Speaker 3>damage to the plaintiffs is less.

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<v Speaker 2>Fox and one has nothing to do with the other.

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<v Speaker 2>But the fact that they settle the dominion is that

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<v Speaker 2>sort of an indication that they'll settle the smartmatic as well.

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<v Speaker 3>It could be. I mean, I think we all feel

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<v Speaker 3>that the reason for the settlement was the risk of

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<v Speaker 3>having all these news anchors having to testify and the

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<v Speaker 3>damage that that could do to Fox over a long

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<v Speaker 3>and extended period of time while the trial was going on.

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<v Speaker 3>Can happen here too, And just because an anchor or

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<v Speaker 3>someone isn't named as a party to the lawsuit doesn't

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<v Speaker 3>mean that they won't be a witness to it, because remember,

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<v Speaker 3>the dominion case is really just against the Fox entities here,

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<v Speaker 3>they're also against Barberomo and Hero and Dobbs and specific

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<v Speaker 3>you know anchors, but they don't have to be named

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<v Speaker 3>in order to land a punch on Fox. And so

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<v Speaker 3>I would guess I would think when you read this

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<v Speaker 3>three hundred page complaint, there are a lot of different

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<v Speaker 3>names of anchors who come up here other than Dobbs

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<v Speaker 3>and Bardiomo and Piero, and there's no reason that they

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<v Speaker 3>couldn't be brought in as witnesses too. I don't know,

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<v Speaker 3>I'd need to look at it more closely, and that

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<v Speaker 3>may be something that's going to be very hard taught,

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<v Speaker 3>and there'll be more discovery that probably comes out in

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<v Speaker 3>this case. So yeah, they're probably great incentives for settlement

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<v Speaker 3>as well. But then you know, in the wings again

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<v Speaker 3>there's the share older actions that could be problematic. Employees

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<v Speaker 3>who either resigned or fired that could create a problem

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<v Speaker 3>is one of them that I know of. It's problematic

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<v Speaker 3>for them. There's a lot happening, and there's a lot

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<v Speaker 3>of blood in the water, and it makes it both

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<v Speaker 3>more valuable for them to settle, but also more difficult

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<v Speaker 3>to settle.

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<v Speaker 2>Dominion and Smartmatic are both suing Newsmax Andaan, which went

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<v Speaker 2>even further than Fox News in promoting the debunked conspiracy

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<v Speaker 2>theories and the supposed election rigging. What do we know

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<v Speaker 2>about those cases? Are they as strong as Dominion's case?

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<v Speaker 3>I would think so, particularly if they're willing to go

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<v Speaker 3>more you know, over the top. Then even Fox was

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<v Speaker 3>because you did have some Fox anchors E. Tucker Carlson,

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<v Speaker 3>for example, was challenging the supporting evidence for some of

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<v Speaker 3>Sidney Powell's statements. So it's I don't think that you're

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<v Speaker 3>likely to even see anything of that kind in the

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<v Speaker 3>Newsmax and ola in cases. I don't know the details

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<v Speaker 3>of those cases as much as I do Smartmatic or Dominion,

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<v Speaker 3>but I'm sure the very same kinds of vulnerabilities are there.

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<v Speaker 3>But again, there may be less actual malice evidence or

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<v Speaker 3>evidence of disbelief by them. They could possibly try to say, oh,

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<v Speaker 3>we were just relying on Fox. I don't know specifically.

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<v Speaker 3>They could do a reliance argument, so you know, Fox

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<v Speaker 3>is reliable and we just relied on them, and you know,

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<v Speaker 3>we just went with what we heard from them and

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<v Speaker 3>some of the people we interviewed. It probably won't work,

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<v Speaker 3>and they're probably all kinds of difficulties internally for them.

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<v Speaker 3>I mean, what's really interesting is we've all been looking

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<v Speaker 3>at Dominion and yet the Smartmatic thing has been just

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<v Speaker 3>ripping along. Number of filings in that docket in New

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<v Speaker 3>York are just extreme ordinary. I think they're well over

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<v Speaker 3>one thousand. There's a lot of stuff that'sn't happen in

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<v Speaker 3>that case, and I gather people are saying they'll be

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<v Speaker 3>tried sometime in twenty twenty five. There'll be motions before then,

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<v Speaker 3>and probably a lot of news coming out regarding them.

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<v Speaker 3>So there's a lot growing here.

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<v Speaker 2>If Tucker Carlson is called to testify in the Smartmatic suit,

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<v Speaker 2>I mean, you have a hostile person testifying against you, then.

0:14:26.520 --> 0:14:29.400
<v Speaker 3>If he is parting ways with them, there's probably some

0:14:29.560 --> 0:14:32.960
<v Speaker 3>understanding that he would need to continue to cooperate. It's

0:14:33.000 --> 0:14:37.400
<v Speaker 3>possible that he was paid substantially as part of the deal.

0:14:37.880 --> 0:14:41.000
<v Speaker 3>I don't know that. If he was paid, then there

0:14:41.040 --> 0:14:44.000
<v Speaker 3>would be with it certain kinds of restrictions on what

0:14:44.080 --> 0:14:46.880
<v Speaker 3>he could or couldn't do. He would surely have to

0:14:46.920 --> 0:14:49.560
<v Speaker 3>cooperate with them and their defense that he sent they

0:14:49.600 --> 0:14:53.840
<v Speaker 3>needed his testimony, So again, it's really hard to call

0:14:53.880 --> 0:14:55.360
<v Speaker 3>at this stage. I think that people are going to

0:14:55.440 --> 0:14:57.880
<v Speaker 3>learn a lot more about it as time passes.

0:14:58.320 --> 0:15:00.600
<v Speaker 2>What do you think the long term impact of these

0:15:00.680 --> 0:15:02.720
<v Speaker 2>cases is going to be.

0:15:03.560 --> 0:15:07.320
<v Speaker 3>I'm a media defense lawyer. I represent news organizations, and

0:15:07.400 --> 0:15:11.840
<v Speaker 3>so I'm constantly thinking how will this affect other claims

0:15:11.880 --> 0:15:16.760
<v Speaker 3>made against other defendants. And you know, you can say

0:15:16.760 --> 0:15:19.680
<v Speaker 3>that Fox is really a political organization and not a

0:15:19.760 --> 0:15:23.240
<v Speaker 3>news organization. Some people say that, but they're protected by

0:15:23.280 --> 0:15:27.160
<v Speaker 3>the same First Amendment protections, whether they're biased or not.

0:15:27.640 --> 0:15:29.640
<v Speaker 3>So I think that what's going to happen is that

0:15:29.760 --> 0:15:32.600
<v Speaker 3>the cause of a case like this, it will fuel

0:15:32.800 --> 0:15:37.440
<v Speaker 3>plaintiffs imagination and they will all be trying to frame

0:15:37.520 --> 0:15:41.120
<v Speaker 3>their own Fox type cases that they think they have

0:15:41.280 --> 0:15:45.160
<v Speaker 3>against some other news organization. I don't think that those

0:15:45.200 --> 0:15:48.280
<v Speaker 3>will be successful. They will be attempted, but I think

0:15:48.280 --> 0:15:51.160
<v Speaker 3>they'll fail, partly because I don't think that you can

0:15:51.200 --> 0:15:56.000
<v Speaker 3>actually get the kind of discovery of news organization's internal

0:15:56.080 --> 0:16:01.000
<v Speaker 3>deliberations and sourcing as was the case here. This was unusual.

0:16:01.160 --> 0:16:04.520
<v Speaker 3>They were able to get inside stuff and overcome what's

0:16:04.560 --> 0:16:09.400
<v Speaker 3>called the reporter's privilege that protects against disclosure of internal

0:16:09.560 --> 0:16:13.520
<v Speaker 3>editorial deliberations in context with sources and so on. They're

0:16:13.520 --> 0:16:15.480
<v Speaker 3>able to get around it because there was so much

0:16:15.560 --> 0:16:21.800
<v Speaker 3>reporting going on about Fox's reporting over an extended period

0:16:21.840 --> 0:16:25.760
<v Speaker 3>of time. You know, there were insiders who were talking

0:16:25.800 --> 0:16:29.680
<v Speaker 3>to news organizations saying, I saw this email, I saw

0:16:29.760 --> 0:16:33.800
<v Speaker 3>that I was in that meeting. Here's what Suzanne Scott said.

0:16:34.320 --> 0:16:37.040
<v Speaker 3>Once you have that kind of specificity and you say

0:16:37.080 --> 0:16:39.360
<v Speaker 3>there was this email, I know it was there, I

0:16:39.400 --> 0:16:42.520
<v Speaker 3>know what they said, then you're more likely going to

0:16:42.520 --> 0:16:45.440
<v Speaker 3>be able to get it, even if the reporter's privilege

0:16:45.800 --> 0:16:48.240
<v Speaker 3>is powerful, as it is in New York, even if

0:16:48.240 --> 0:16:50.920
<v Speaker 3>it's asserted. So if you don't know what you're looking for,

0:16:51.040 --> 0:16:53.280
<v Speaker 3>you can't get it. And those you can't just say,

0:16:53.320 --> 0:16:56.120
<v Speaker 3>do you have anything in which you displayed any doubt

0:16:56.160 --> 0:16:58.320
<v Speaker 3>about what you were publishing? You can't do that. That's

0:16:58.360 --> 0:17:01.560
<v Speaker 3>fishing and the reporter which doesn't allow it, though in

0:17:01.760 --> 0:17:05.639
<v Speaker 3>ordinary cases you could get it. And that's the problem

0:17:05.640 --> 0:17:07.760
<v Speaker 3>that Fox has here, is that there was so much

0:17:08.400 --> 0:17:11.320
<v Speaker 3>information out there, so many people who were being fired,

0:17:11.760 --> 0:17:16.160
<v Speaker 3>so many people who resigned because their professional sensibilities were

0:17:16.160 --> 0:17:19.720
<v Speaker 3>offended by what Fox was doing, and then they themselves

0:17:19.760 --> 0:17:24.040
<v Speaker 3>either wrote articles, they themselves turned over documents to news

0:17:24.080 --> 0:17:28.280
<v Speaker 3>reporters who then cited those things. And once that's out there,

0:17:28.560 --> 0:17:32.200
<v Speaker 3>then it's harder to block that because then the claimant

0:17:32.960 --> 0:17:37.040
<v Speaker 3>has the particular artive that allows them to overcome the

0:17:37.200 --> 0:17:40.240
<v Speaker 3>reporter's privilege. And by the way, it was still heavily

0:17:40.320 --> 0:17:43.400
<v Speaker 3>battled in the dominion case. In other words, Fox did

0:17:43.440 --> 0:17:46.200
<v Speaker 3>assert the reporters privilege, but it was hard to do

0:17:46.359 --> 0:17:50.359
<v Speaker 3>because the stuff was already out there and already identifiable,

0:17:50.480 --> 0:17:53.440
<v Speaker 3>which is rare and in many libel cases, particularly those

0:17:53.480 --> 0:17:57.919
<v Speaker 3>that just involved one article or one line or several

0:17:58.000 --> 0:18:00.920
<v Speaker 3>lines in one article, which is really what most things

0:18:00.920 --> 0:18:03.800
<v Speaker 3>are at one publication with a lot of different statements

0:18:03.880 --> 0:18:06.160
<v Speaker 3>in it. But you're still not going to as likely

0:18:06.560 --> 0:18:09.680
<v Speaker 3>to be able to overcome the reporter's privilege in those

0:18:09.760 --> 0:18:10.560
<v Speaker 3>kinds of setting.

0:18:10.880 --> 0:18:13.119
<v Speaker 2>Thanks so much for your insights, David. It's such a

0:18:13.200 --> 0:18:18.639
<v Speaker 2>fascinating case or cases. That's David Corzenic of Miller Corsenic

0:18:18.680 --> 0:18:21.399
<v Speaker 2>Summer's Raymond. And that's it for this edition of The

0:18:21.440 --> 0:18:24.399
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0:18:24.440 --> 0:18:27.560
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0:18:27.560 --> 0:18:32.159
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0:18:36.000 --> 0:18:39.240
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