Fox News hammered out a historic $787million settlement at the "last minute" with tense behind the scenes talks that stunned a packed courtroom.
Lawyers for Dominion Voting Systems were expecting to go to trial against Rupert Murdoch's empire and had been preparing opening statements - before rumours of a sudden settlement began to swirl in the courthouse.
Proceedings dramatically ground to a halt for nearly three hours after the lunch break, in what was said to have felt like a mysterious, unexplained delay, right as what had been billed as the "defamation trial of the century" was on the brink of kicking off. Lawyers were standing around in court, checking their phones, talking together and waiting.
Then, lawyers for Fox and Dominion were seen briefly huddling in court as the delay dragged on and reporters observed one of Murdoch's legal men showing a small piece of paper to a lawyer for their opposition.
Then, just a few minutes later, the lawyers - Fox attorney Dan Webb and Dominion attorney Justin Nelson - left the courtroom together and went into a private, restricted area meant for courtroom staff. They returned together, moments later, and returned to their respective tables, and began looking at their mobile phones.
It is not known what they discussed in the private chat, but Delaware Superior Court Judge Eric Davis, who had vanished for the three hours before returning, said: “I have been on the bench since 2010…I think this is the best lawyering I’ve had, ever.”
In his final words before departing the courtroom, Judge Davis said: “I would be proud to be your judge in the future."
Before dismissing the jury, he told them: “The parties have resolved their case. Your presence here… was extremely important. And without you, the parties would not have been able to resolve their situation."
The stunning settlement agreed by the right-wing network means Fox News will pay $787 million (£630 million) to Dominion Voting Systems, an election technology company based in Colorado, US.
Dominion said Fox spread conspiracy theories about votes being rigged against Donald Trump in the 2020 election.
Elie Honig, a former assistant US attorney for the Southern District of New York, said Murdoch had settled because "they were caught lying by the Judge."
He told CNN: "Translated it means we got caught lying by the judge – and I think that's exactly why we are seeing this absolutely jaw-dropping number. I didn't think there was any way they would get $1.6billion – even when they proved their case, even if they proved it overwhelmingly to a jury.
"Let's remember, by its own estimation, Dominion valued the entire company at somewhere between $30 and $80 million. This settlement is 10 times the value of Dominion as an entire company. That's how strong a statement this is with this number," Honig explained."
As well as this, Murdoch's Fox News star anchors, the outspoken and often controversial Tucker Carlson and Sean Hannity, will now not have to give embarrassing evidence in court, potentially humiliating his empire.
And they won't be required to even acknowledge on air the lies they told about Dominion, as part of the settlement.
But the broadcaster did acknowledge in its statement that it had broadcast falsehoods were broadcast - but refused to apologise.
It said: "The court's rulings finding certain claims about Dominion to be false."
Fox ludicrously claimed the deal reflected its "commitment to the highest journalistic."
However, as the company were going to have to deal with another round of embarrassing revelations they instead chose to compromise, according to experts.
Why was the case brought?
Dominion, which is an election technology company, filed a defamation lawsuit against Fox News in 2021.
The company claimed for $1.6 billion in damages after the network pushed dozens of misleading and false Donald Trump conspiracy theories claiming the former president lost the 2020 presidential election to Joe Biden with rigged votes.
This led to damaging and false information to spread about the company's voting technology, according to Dominion, who said "the lies were good for Fox's business."
Fox, however, claimed it was reporting the claims made by Donald Trump's administration and his officials.
Who was going to stand trial?
Dominion wanted pro-Trump Fox News anchors to stand trial and testify along with a number of executives.
These included hosts Sean Hannity, Tucker Carlson, Maria Bartiromo, Laura Ingraham and Bret Baier.
Suzanne Scott, Fox News CEO, Jay Wallace, Fox News president were also wanted by the company from testifying after a number of private emails showed concern for their coverage but they continued to spread misinformation.
In April, Delaware Superior Court Judge Eric Davis confirmed Rupert Murdoch and his son CEO Lachlan Murdoch could be forced to testify - much to the embarrassment of the owners.
Embarrassing messages about Trump made public
There were nearly ten thousand messages of private emails and text messages detailing how Fox News hosts, producers and executives felt about Donald Trump.
Many were made public ahead of the trial including host Tucker Carlson writing in one text message he “passionately” hates Trump - despite giving him favourable coverage on-air.
Tucker Carlson said in November 2021 Trump’s decision to snub Joe Biden’s inauguration was “so destructive,” adding that Trump’s post-election behaviour was “disgusting” and that he was “trying to look away.”
But despite supporting the former president on television, Mr Carlson expressed his disdain of the Republican during private text messages on January 4, 2021.
After a number of unfounded and false statements by Mr Trump about a rigged election, the Fox News host wrote a message to an unidentified person.
He said: "We are very, very close to being able to ignore Trump most nights. I truly can't wait. "I hate him passionately. I can't handle much more of this."
Rupert Murdoch sent an email to a New York Post reporter describing Trump’s election lies as “bulls**t and “damaging” - but refused to do anything about it.
He also sent an email to Fox News chief executive Suzanne Scott stating his company went too far, he wrote: “Maybe Sean [Hannity] and Laura [Ingraham] went too far" after spreading false lies after Trump's loss to Joe Biden.
What were the lies?
Dominion Voting Systems sued Fox for $1.6 billion, claiming the news outlet repeatedly aired allegations that the company’s voting machines were rigged against Trump in 2020 while knowing the accusations were untrue.
Fox contended that it was reporting newsworthy charges made by supporters of the Republican president. The network said it was supported legally by libel standards.
Fox, however, claimed the "election was stolen" with anchors endorsing false claims of election fraud.
Rupert Murdoch, questioned under oath, agreed that the 2020 election, won by Democrat Joe Biden, was free and fair: “The election was not stolen,” he said.
Why was the settlement agreed?
The staggering $787.5m (£634m) defamation settlement was agreed to try and avert further legal action.
It was also to stop Fox News hosts and executives to testify after promoting misleading and false claims around the 2020 election and Donald Trump.
Part of the settlement will ensure Fox News will not publicly address their false coverage on-air.
They will also not make any apologies regarding the damaging claims about Dominion.
In addition, the only reference to an apology was in the network's statement which said a Delaware court found “certain claims about Dominion to be false.”
This is despite leading Fox executives knowing the claims were in fact false.
Dominion chief executive John Poulos told a press conference the deal included Fox "admitting to telling lies, causing enormous damage to my company".
He said: "Lies have consequences. Over two years ago a torrent of lies swept Dominion and election officials across America into an alternative universe of conspiracy theories, causing grievous harm to Dominion and the country."
What's next for Fox News and Rupert Murdoch?
Fox faces a second election defamation lawsuit from Smartmatic who are seeking $2.7billion for similar claims.
In addition, Dominion still has lawsuits pending against two conservative news networks, OAN and Newsmax.
The company has also sued Trump allies such as Rudy Giuliani, Sidney Powell and Mike Lindell for their role in spreading damaging and incorrect claims that the election was rigged.
Civil litigation lawyer Michelle Simpson Tuegel told the BBC that the settlement "speaks to the massive threat Fox saw from this litigation".
"The reputational harm of having executives, including chairman Rupert Murdoch, and hosts take the stand seems to have moved the parties towards a resolution."
