The defamation lawsuit filed by Dominion Voting Systems against Fox Corp. and its cable TV networks, Fox News and Fox Business, is set to go to trial soon, raising questions about the potential repercussions for Fox and its operations. Dominion initiated the lawsuit in March 2021, alleging that Fox hosts promoted false claims that Dominion's voting machines were manipulated in the 2020 presidential election, which saw Joe Biden defeat Donald Trump. The trial is scheduled to start on Monday.

Former Fox Chairman and CEO Barry Diller, now the chairman of IAC, commented at a Semafor-hosted media conference earlier this week that despite expecting Fox to lose the case and pay Dominion "a very big reward," the company would likely pay the damages and continue operations. Diller joked, "What's it going to do? Worsen [Fox Corp. Chair] Rupert Murdoch's reputation?"

The most immediate potential consequence for Fox is the financial impact: The company must cover the costs of defending itself against the allegations and, if it loses, potentially pay Dominion damages exceeding $1.6 billion. Regardless of the outcome, an appeal is probable. Fox has refuted Dominion's claims and argued that it is protected by the First Amendment. It has also challenged the damages Dominion is seeking. The Delaware judge presiding over the case, who determined a trial was necessary, recently stated that a jury would decide the matter.

Neither party has shown a willingness to settle the case, and both sides have participated in a court-ordered meeting. Even if they were to reach a settlement, Fox would still be liable for a substantial payment, according to experts. Imraan Farukhi, an assistant professor at Syracuse University's S.I. Newhouse School of Public Communications, said, "There could be a lot of implications depending on how it plays out." Apart from the financial consequences, Farukhi mentioned, "The other question is what will they do with their talent if they lose? The majority of the stars at Fox are implicated. Any other news organization would have probably seen their hosts losing their jobs for improper reporting."

Lou Dobbs, Tucker Carlson, Maria Bartiromo, Sean Hannity, Laura Ingraham, and Jeanine Pirro are all set to testify in Dominion's case, with their shows listed as evidence. The Delaware judge recently sanctioned Fox for withholding evidence, stating that if depositions or other aspects needed to be redone, it would come at the company's expense.

The most likely immediate impact on Fox and its bottom line could involve libel training classes for talent and newsroom staff, as well as increased production insurance policies covering defamatory statements, according to Farukhi. These policies may also help Fox cover costs associated with the lawsuit. However, the near-term financial effects are unlikely to devastate the network.

Despite the release of thousands of documents over the past few months revealing doubts from Fox's top TV hosts and executives about the on-air election-fraud allegations, Fox News' ratings have remained stable, as has the parent company's stock price, according to Nielsen.