Fake news on Fox News: What really happened with those billion-dollar lawsuits

Fake news on Fox News: What really happened with those billion-dollar lawsuits

You've probably seen the clips. Or the headlines. Maybe you’ve sat through a family dinner where someone insists that what they saw on TV is the absolute, unfiltered truth, while someone else is screaming about fake news on Fox News. It’s a messy, polarizing topic that goes way beyond simple politics. We aren't just talking about "bias" anymore. We're talking about massive legal settlements, internal emails that sound like a spy novel, and a fundamental shift in how people trust—or don't trust—the media.

Honestly, the word "fake" gets thrown around so much it’s basically lost its meaning. But in the world of broadcast law and defamation, it has a very specific, very expensive definition.

The Dominion Lawsuit: A Watershed Moment

Let's look at the elephant in the room. The Dominion Voting Systems lawsuit wasn't just another legal spat. It was a $787.5 million wake-up call. That’s a staggering amount of money. For context, that is one of the largest defamation settlements in American history. Dominion argued that Fox pushed "fake news" regarding the 2020 election—specifically claims that their machines were rigging votes—despite knowing these claims were, well, garbage.

The discovery process was wild.

We got to see behind the curtain. Internal messages from top stars and executives showed a massive disconnect between what was said on air and what was whispered in private. Tucker Carlson, in one famous text, said of the election fraud claims, "The whole thing seems restively crazy to me." Yet, the segments continued. Why? Because the audience was drifting toward smaller, more fringe networks like Newsmax. It was a business decision. They were afraid of losing viewers.

This is the nuance people miss. It wasn't necessarily a grand ideological conspiracy to overthrow the government in every instance. Sometimes, it was just about the quarterly earnings report. When you're terrified your audience is going to leave, you might start telling them what they want to hear, even if you know it isn't true. That is the literal definition of a feedback loop gone wrong.

The Smartmatic Shadow

While Dominion got the big headlines and the early payday, Smartmatic is still out there. They are suing for even more—$2.7 billion. They claim that the network's coverage decimated their business value globally.

Think about that.

If you’re a company trying to sell voting technology to a foreign government, and the most-watched news network in the U.S. says your software is designed to flip elections, your brand is basically radioactive. You can't just "PR" your way out of that. You go to court. This ongoing litigation keeps the conversation about fake news on Fox News in the legal spotlight, forcing the network to defend its editorial choices under oath.

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How does a network get away with some of this for so long? It’s the "Opinion" defense.

Basically, Fox (and other networks, to be fair) argues that their prime-time hosts aren't "news anchors" in the traditional sense. They are commentators. In a 2020 case involving Tucker Carlson, a federal judge actually ruled that the "general tenor" of his show should inform viewers that he is not "stating actual facts" about the topics he discusses and is instead engaging in "exaggeration" and "non-literal commentary."

That is a wild thing to wrap your head around.

The defense was literally: No reasonable viewer would take this man seriously as a source of hard facts. But here’s the problem. Millions of people do take it seriously. They don't see the fine print that says "For Entertainment Purposes Only." They see a guy in a suit behind a desk with a "NEWS" logo in the corner.

  • The Desk: Looks like a news desk.
  • The Graphics: Look like news graphics.
  • The Tone: Sounds like an urgent news bulletin.

If it looks like a duck and quacks like a duck, but the legal department says it's an "opinionated platypus," the audience is still going to expect eggs. This blurring of lines is where the most effective misinformation lives. It’s not always a flat-out lie; sometimes it's just "just asking questions" until the audience reaches the wrong conclusion on their own.

Why Do People Still Watch?

It’s easy to point fingers and call viewers "gullible." That's lazy. The truth is way more complex. Fox News provides something that many people feel they can't get anywhere else: a sense of belonging.

Psychologically, we are all prone to confirmation bias. We like being told we're right. When Fox reports on "cultural grievances" or "the war on [insert thing here]," it validates the frustrations of a huge segment of the population that feels ignored by the "coastal elites" in New York and D.C.

It's a powerful drug.

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If you spend twenty years trusting a brand, a single lawsuit—even a $700 million one—isn't going to change your mind overnight. You’ll probably view the lawsuit itself as an attack by the "woke mob" or a "weaponized legal system." The network knows this. Their branding is incredibly resilient because it's built on identity, not just information.

The Cost of Misinformation

Beyond the legal fees, there is a societal cost. When fake news on Fox News or any other major platform takes root, it erodes the "shared reality" we need for a functioning democracy. If we can't agree on basic facts—like who won an election or whether a vaccine works—we can't have a productive debate about what to do next.

We end up in these silos.

You have your facts, I have mine, and we’re both convinced the other person is a brainwashed idiot. It’s exhausting. And it’s profitable. Conflict drives engagement. Engagement drives ad revenue.

How to Spot the Spin

You don't have to be a media scholar to see through the haze. You just have to be a little bit cynical. When you're watching any cable news—not just Fox—look for the "Loaded Language."

Are they using words like "regime," "onslaught," or "radical" every three seconds? That’s an emotional trigger. It’s designed to stop you from thinking and start you feeling. Fear is the most effective tool in the kit. If they can make you afraid, you'll keep watching to see what happens next.

  1. Check the "Source" of the outrage. If a host says "people are saying," ask: Which people? Where?
  2. Look for the correction. Does the network issue a quiet retraction at 2:00 AM after screaming the headline at 8:00 PM?
  3. Follow the money. Who are the advertisers? If the big blue-chip brands start pulling out, it usually means the "fake news" has crossed a line into "legal liability."

Real-World Consequences

We saw the fallout on January 6th. While many factors contributed to that day, the persistent narrative that the election was "stolen"—a narrative heavily promoted in certain Fox time slots—played a massive role in the mindset of those who marched on the Capitol. This isn't just "mean tweets" or "political bickering." This is real life. People went to jail. People died.

The network has since parted ways with some of its more controversial figures, like Tucker Carlson. Was it because of the rhetoric? Or was it because the legal risk became greater than the ratings reward? In corporate America, it’s almost always the latter.

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The landscape is changing fast. With AI-generated deepfakes and social media algorithms, the problem of "fake news" is only going to get harder to manage. Fox News is just one player in a much larger, much scarier game.

To stay informed without losing your mind, you need a diverse "media diet." Don't get all your protein from one source. Read international news. Read local papers. Check out long-form investigative journalism that takes months to produce, rather than a talking head who has to fill an hour of airtime every single night.

Practical Steps for the Savvy Consumer

If you want to protect yourself from misinformation, you've got to be proactive. It’s a bit of a chore, but it’s better than being misled.

Verify before you share. If you see a shocking clip from Fox (or anyone else), spend thirty seconds on Google. See if other outlets are reporting the same thing. If the only people talking about it are on one specific channel, that’s a massive red flag.

Understand the format. Learn the difference between a "News Report" and a "Panel Discussion." A news report should have vetted sources and balanced quotes. A panel discussion is basically just "professional arguing." It’s fine for entertainment, but it’s a terrible place to get your facts.

Support local journalism. Most "fake news" happens at the national level where the stakes are high and the rhetoric is loud. Your local newspaper is much less likely to lie to you about the school board meeting or the new tax code because they actually have to live in the community they cover.

The battle over fake news on Fox News is a symptom of a much larger struggle for the soul of American information. By understanding the legal pressures, the psychological hooks, and the business models involved, you can start to see the strings. And once you see the strings, it’s much harder for them to pull you along.

Stay skeptical. Keep your eyes open. And for the love of everything, maybe turn off the TV once in a while.


Next Steps for Media Literacy

  • Audit your feed: Take a look at your social media follows. If everyone you follow agrees with you 100% of the time, you're in an echo chamber. Follow at least three reputable sources that challenge your worldview.
  • Use Fact-Checking Tools: Bookmark sites like PolitiFact, Snopes, or FactCheck.org. When a claim sounds too good (or too bad) to be true, run it through the search bar.
  • Read the Court Filings: If you really want the truth about the Dominion or Smartmatic cases, don't watch the news summaries. Go to sites like DocumentCloud and read the actual internal emails and texts yourself. The raw data is much more revealing than any 3-minute segment.
  • Check the "About Us" page: On any news site, look for their ethics policy and how they handle corrections. A credible organization will be transparent about its mistakes.