MIAMI (AP) — A voting technology company is suing Fox News, three of 
its hosts and two former lawyers for former President Donald Trump — 
Rudy Giuliani and Sidney Powell — for $2.7 billion, charging that the 
defendants conspired to spread false claims that the company helped 
“steal” the U.S. presidential election.
The 285-page complaint 
filed Thursday in New York state court by Florida-based Smartmatic USA 
is one of the largest libel suits ever undertaken. On Jan. 25, a rival 
election-technology company — Dominion Voting Systems, which was also 
ensnared in Trump's baseless effort to overturn the election — sued Guiliani and Powell for $1.3 billion.
Unlike
 Dominion, whose technology was used in 24 states, Smartmatic's 
participation in the 2020 election was restricted to Los Angeles County,
 which votes heavily Democratic.
Smartmatic's limited role 
notwithstanding, Fox aired at least 13 reports falsely stating or 
implying the company had stolen the 2020 vote in cahoots with 
Venezuela's socialist government, according to the complaint. This 
alleged “disinformation campaign” continued even after then-Attorney 
General William Barr said the Department of Justice could find no evidence of widespread voter fraud.
For
 instance, a Dec. 10 segment by Lou Dobbs accused Smartmatic and its 
CEO, Antonio Mugica, of working to flip votes through a non-existent 
backdoor in its voting software to carry out a “massive cyber Pearl 
Harbor," the complaint alleged.
“Defendants’ story was a lie," the complaint stated. "But, it was a story that sold.”
The
 complaint also alleges that Fox hosts Dobbs, Maria Bartiromo and 
Jeanine Pirro also directly benefitted from their involvement in the 
conspiracy. The lawsuit alleges that Fox went along with the 
“well-orchestrated dance” due to pressure from newcomer outlets such as 
Newsmax and One America News, which were stealing away conservative, 
pro-Trump viewers.
Roy Gutterman, a media law professor at 
Syracuse University, said the lawsuit is compelling and based on 
specific examples and facts, not frivolous claims.
“This is a perfect example of why we have the law of defamation in first place,” said Gutterman, a former reporter.
Fox
 News Media, in a statement on behalf of the network and its hosts, 
rejected the accusations. It said it is proud of its election coverage 
and would defend itself against the “meritless” lawsuit in court.
Fox
 "is committed to providing the full context of every story with 
in-depth reporting and clear opinion,” the company said in a written 
statement.
Giuliani and Powell did not immediately respond to requests for comment.
For
 Smartmatic, the effects of the negative publicity were swift and 
devastating, the complaint alleges. Death threats, including against an 
executive’s 14-year-old son, poured in as Internet searches for the 
company surged, Smartmatic claims.
With several client contracts 
in jeopardy, the company estimates that it will lose as much as $690 
million in profits over the next five years. It also expects it will 
have to boost spending by $4.7 million to fend off what it called a 
“meteoric rise” in cyberattacks.
“For us, this is an existential 
crisis,” Mugica said in an interview. He said the false statements 
against Smartmatic have already led one foreign bank to close its 
accounts and deterred Taiwan, a prospective client, from adopting 
e-voting technology.
Like many conspiracy theories, the alleged 
campaign against Smartmatic was built on a grain of truth. Mugica is 
Venezuelan and Smartmatic’s initial success is partly attributable to 
major contracts from Hugo Chávez's government, an early devotee of 
electronic voting.
No evidence has emerged that the company rigged
 votes in favor of the anti-American firebrand, and for a while the 
Carter Center and other observers held out Venezuela as a model of 
electronic voting. Meanwhile, the company has expanded globally.
Smartmatic
 is represented by J. Erik Connolly, who previously won what's believed 
to be the largest settlement in American media defamation, at least $177
 million, for a report on ABC News describing a company's beef product 
as “pink slime.”
“Very rarely do you see a news organization go 
day after day after day against the same targets," Connolly said in an 
interview. “We couldn't possibly have rigged this election because we 
just weren't even in the contested states to do the rigging.”
Fox,
 after receiving a demand for retraction from Smartmatic’s lawyers in 
December, aired what it called a “fact-checking segment” with an 
election technology expert. In the segment, the expert said there was no
 evidence of tampering — something the defendants knew from the start 
and reported elsewhere on the network, the complaint alleges.
Far 
from making the company whole, Mugica said he saw the segment — in which
 an unidentified voice asks questions referenced in the retraction 
letter — as an admission of guilt.
Gutterman said that any 
after-the-fact correction can be a mitigating factor but doesn't get of 
the defendants entirely off the hook if they are found to have 
previously been propagating false claims. With the line between fact and
 opinion increasingly blurred in the current media landscape, he said he
 expects the lawsuit to force news outlets trying to capitalize on 
support for Trump to reconsider how far to stretch the limits.
“This
 is certainly a wake-up call that, just because you’re dealing in 
opinion and not straight news, you can’t openly put anything on the 
air,” he said. “Facts are still facts.”