A New York state appeals court rejected Fox Corp. bid to throw out a defamation lawsuit by Smartmatic over false claims that the voting technology company helped rig the 2020 presidential election. The ruling on Thursday allows the case to proceed toward trial.

Fox Corp , the parent of Fox News Network, failed to convince a New York state appeals court to dismiss a defamation claim in electronic voting systems company Smartmatic's $2.7 billion lawsuit over the network's 2020 post-election coverage.

Fox Corp. will have to face defamation claims for statements aired on Fox News, a New York appellate court ruled Thursday.

A New York appeals court ruled Thursday that Fox Corporation must face Smartmatic’s mammoth defamation lawsuit over the airing of 2020 election lies on Fox News, dealing a blow to the Rupert Murdoch-controlled media giant.

The complaint, which arose out of Fox News’s promotion of vote-rigging conspiracy theories after the 2020 U.S. presidential election, is on track to proceed to trial.

A New York appeals court has rejected Fox Corp.’s request to toss a $2.7 billion defamation suit from voting machine manufacturer Smartmatic. Smartmatic alleged in a suit that the Fox News parent company “effectively endorsed and participated in” a campaign suggesting that the voting machine company participated in election fraud by manipulating the results of the 2020 presidential election.

The latest ruling represents a key victory for Smartmatic’s efforts to go after the right-wing media outlet over its promotion of debunked claims that the election was stolen from former President

A New York appellate court declined to toss Fox Corp. from Smartmatic’s $2.7 billion defamation case. Smartmatic sued Fox News and Fox Corp. following the 2020 presidential election, claiming that on-air personalities and guests amplified false claims that it was involved in rigging the ballots.