Investor Presentaiton
Fox has material legal liability risks that must be considered in the context of any deal
Dominion and Smartmatic are requesting relief in excess of $4 billion from Fox - each case has survived the motion to dismiss
What is the potential legal liability?
■ Dominion and Smartmatic generally allege that Fox attempted to boost its ratings by fabricating the narrative that their voting machines
or voting software caused the election to be stolen from former President Trump
■ Dominion is seeking over $1.6 billion in damages for defamation, and Smartmatic is seeking over $2.7 billion in damages for
defamation and disparagement
■In both cases, Fox argues it was merely reporting newsworthy events protected by the First Amendment, and it did not act with actual
malice. They believe the heightened malice standard applies because both Dominion and Smartmatic are "public figures"
■ In both cases, the court has denied Fox's motion to dismiss. In the case of Dominion, a trial is scheduled for April 2023 and in the case of
Smartmatic a trial date has not yet been set
Irenic has no opinion on the merits of these claims, but believes that the Special Committee must incorporate a risk-weighted I
calculation of these liabilities in assessing Fox's value, as well as consider the potential broader risks to the business from an adverse |
judgment. It may be more prudent for the special committee to await an outcome of these cases before proceeding with any Fox I
transaction.
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IRENIC
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