Billionaire Democrat Supporter Off-Limits in Fox News’ $2.7 Billion Legal Battle

In the ongoing $2.7 billion defamation case filed by voting technology company Smartmatic, a New York judge has ruled that Fox News can’t question Reid Hoffman — the billionaire co-founder of LinkedIn and a major Democratic donor — even though he helped fund the lawsuit.

This decision is a blow to Fox, which had hoped to dig into Hoffman’s motivations for backing the case and use that as part of their defense. But the judge wasn’t having it.

The Backstory

Smartmatic filed its lawsuit back in 2021, accusing Fox News and several of its high-profile hosts of spreading false and damaging claims about the company’s role in the 2020 election. The network aired segments suggesting, without evidence, that Smartmatic’s technology was somehow involved in voter fraud to help Joe Biden defeat Donald Trump.

Smartmatic said those claims were flat-out lies — and that they cost the company business, credibility, and future opportunities. That’s why they’re asking for a staggering $2.7 billion in damages.

Fox News has denied wrongdoing and says they were simply reporting on newsworthy allegations made by others. They’ve also argued the lawsuit is an attack on free speech and press freedom.

Why Fox Wanted to Question Hoffman

Fox News wanted to depose — or formally question under oath — Reid Hoffman, because he invested $25 million to help fund Smartmatic’s legal efforts. They argued that Hoffman’s involvement might reveal something about Smartmatic’s motives or how much the case is really worth.

In short, Fox was hoping to show that Smartmatic might be inflating its damages or being propped up by partisan interests.

But the court wasn’t convinced.

What the Judge Said

Judge David B. Cohen made it clear: just because Hoffman helped fund the lawsuit doesn’t mean he should be dragged into it personally. The judge said allowing Fox to question him could create a chilling effect, where wealthy individuals might avoid supporting legal cases — even legitimate ones — for fear of being pulled into the legal spotlight.

That could have big consequences for other lawsuits too, especially ones that rely on outside financial help to go up against deep-pocketed opponents.

A Small Win for Fox?

While the judge blocked the deposition of Hoffman himself, he did give Fox a bit of a concession. They’ll be allowed to question Dmitri Mehlhorn — a former aide to Hoffman who has publicly spoken about the Smartmatic case — but only for two hours, and only about specific conversations he and Hoffman had with Smartmatic’s CEO.

So, it’s not a total loss for Fox, but it’s definitely not the broad investigation they were hoping for.

What This Means Going Forward

This case is far from over. The legal fight is still in the discovery phase — the part where both sides gather evidence and prepare for a potential trial. And while this ruling won’t make or break the entire case, it does shape how much Fox can argue that politics or outside funding played a role in the lawsuit.

More broadly, this could influence how courts handle wealthy donors who help fund high-profile lawsuits. If funders can’t be questioned, it might encourage more people to step in and support cases without fear of personal legal headaches.

For now, Smartmatic’s case against Fox News rolls on — and everyone in the media world is watching closely. With so much money on the line, and big questions about truth, power, and accountability in play, this case is shaping up to be one of the biggest media lawsuits in recent memory.

Stay tuned.