“The Earth is round. Two plus two equals four. Joe Biden and Kamala Harris won the 2020 election for president and vice president of the United States.” So begins the 280-page complaint filed by Smartmatic, an election software company, against the Fox Corporation.
Smartmatic accuses the network of doing irreparable damage to the company’s business by allowing election conspiracy theorists to use Fox News as a megaphone for misinformation.
Today, we hear from Antonio Mugica, Smartmatic’s C.E.O., and the lawyer Erik Connelly about the $2.7 billion case.
Guest: Ben Smith, the media columnist for The New York Times.
For an exclusive look at how the biggest stories on our show come together, subscribe to our newsletter. You can read the latest edition here.
Background reading:
- In the latest volley in the dispute over disinformation in the presidential election, Rupert Murdoch’s Fox Corporation has been sued by Smartmatic, which accuses his cable networks of defamation and contributing to the fervor that led to the siege of the Capitol.
- In December, Ben Smith spoke with Mr. Mugica and Mr. Connelly about the claims being made against Smartmatic. Read the interview here.
For more information on today’s episode, visit nytimes.com/thedaily. Transcripts of each episode will be made available by the next workday.
This is an unofficial transcript meant for reference. Accuracy is not guaranteed.
To have the filing funnier? Second, it's rather having so yeah yeah. How many pages is it its two hundred and eighty paid
And what would you mind just reading me the beginning? The earth is round two plus two equals for Joe Biden and calmly Harris when the twenty twenty election for president, and vice president of the United States, the election was not stolen, rigged or fixed. He's our facts. There demonstrable an ear.
Suitable defendants have always known these facts. They knew Joe Biden and Camera Harris one, twenty, twenty: U S election, they knew
the election was not stolen. They knew the other.
And was not read or fixed? They knew these truths, just as the
The earth is round, and two plus two equals for defendants did not want Joe Biden in camera harrassed when the election they wanted. President Donald Trump, and Vice President Michael, tends to win real action. Defendants were disappointed. Defendants decided to tell people that the election was stolen from President Tromp and vice president pants defendants had an obvious problem with their story. They needed a villain. Defendants decided to make smart Mattock the villain in their story, having invented their story and created their villain.
Defend and set about spreading the word night after night publication after publication FACTS News reached out to its billions of yours and readers around the world with a story, Joe Biden, Camelot Harris did not win the twenty twenty election. Smart Maddox stole the election for them from the New York Times. I'm likeable borrow. This is a daily
Smart Matic, an election software company, has just filed a defamation lawsuit against Fox NEWS over false claims spread by the network, another company
rule in the twenty twenty election. The move follows a similar lawsuit by another election software Company dominion ticket
The law suits are raising the possibility that the ports might be one of the
you or meaning ways to confront the country's crisis of disinformation. Today, my colleague many economists, Ben Psmith, speaks with Smart.
Ex seal and way of bringing the case it's Friday February, Fair,
Where are you now internet? I mean Walker, Don Florio back in Florida back back where it all began yeah exactly. We still are had also a good place to start their stories and early two thousand and Florida were Antonia. Mohican had just moved from Venezuela and in how you landed Boca, just to begin how he was software engineer and you just founded a digital security company. Smart Matic is mostly work with banks bought. You know something happened that that put us in the path of elections I can put. This was for
in two thousand and seven few months, then he had a front row seat to the incredible debacle that was Bush v Gore and we just pulled in believe. You know that the most powerful country on earth didn't know how to count it's boards.
And it was at that time that actually my co founders said why don't we apply or security tag to design a voting solution? I made some
like a good idea and by two thousand and five we were already can of the largest provider of voting technology in the world? Who are so let, let's fast forward to say, act over of twenty twenty should give?
Somebody else gets of your business where, where are your biggest elections, where your biggest customers, while
we. We have customers in twenty five countries around the world, the largest customers we have, I would say the largest- is the Philippines. It's it's pretty large countries. Seven thousand islands has sixty five million voters. We provide all the technology and support services for
election for the entire country. We provide results in a matter of hours. Sporadic is because
the multinational multi million dollar company of Antonios dreams and then comes last November,
so tell me went when you first here the name Smart Matic pop up in the discussion of the election. It was, I forget, the exact
they form a New York city. May I present trouble personal attorney. Would actually Army is working to establish how many legal votes were actually cast any joyously right now. Will you
but really it was. It was gonna. Forty five days after the election, the first time that I think good morning,
was Giuliani that you know said something limited way beyond what people think they, including
very, very dangerous foreign company, I'm completely unexpected the software that they use,
is done by a company called Smart Matic. The gist of these allegations was the dominion
The company is voting. Machines were actually used in some swing. States like Georgia was using smart, Matic software and that that software was flipping votes from Donald Trump to Joe Biden, and this company has tried and true message
for fixing elections by ten bound up in that idea was decided in Venezuela, which
where Antonios from and which was one of his first customers with somehow part of these shady dealings.
Company. It was founded by Chavez
by Chavez is too to allies and still own on it being used to cheat in elections in South America.
Of course one say you'd never want to see is a Fox news with it.
Big screen saying you know these people, you gotta, remember, and what you and that pattern that you have there. We have evidence that test same patterns
automatic use and other elections in which they were just qualify
and see my name their beings. You knocked basically pointed
Is it creaming off? This whole thing has to be investigated as a national security matters. When that
to be very honest with you, I I thought. Oh gaieties is just kind of add some kind of a mistake
He called you, no confusion that someone has, as you know this one guy saying one thing one time and that Savior noise is such a big fantasy, any so outrageous that you know these. These will have no legs, and this has to be examined. Maria beyond this election
I believe, will get overturn, but no such luck laugh aren't ready where it had been following your investiture.
Thank you very much for breaking all of that is on the strengthened this morning. It didn't stop with Julia Sidney, thanks very much for being here.
Appreciate your time this morning. I want to get right into it. We just heard about the software made by Smart Matic from Rudy
POW one of the main lawyer springing court. Cases on behalf of the trunk campaign also found a home on Fox for her allegations about Smart Matic. We have so much avenant.
I feel like it's coming in through a fire hose President Trump,
one, by not just hundreds of thousands of workers, but by millions of those that were shifted by this software that was designed expressly for that purpose. In the days,
Joe Biden being declared the President elect these allegations just kept exploding. All over Fox is one huge, huge criminal conspiracy.
That should be investigated by military intelligence, for its national security implications and we're being spread, not just by guess literally impel. Welcome back the election results in several battleground states continue to be under intense focus as allegations of voter fraud or being invested.
But Firefox anchors themselves will now Joe the widespread irregularities, anomalies and cheating and the presidential election president trumps legal team says potentially
Rig voting machines demand a national security investigation after a few days,
It was clear that these was
this were gonna turn into something really big the conspiracy theories.
At all over at when media, to places like news max and one american news network, the name, Smart Matic became synonymous with the notion of a stolen election. One source says that the key point to understand is that the small matter,
system has a back door that allows the votes to be mirrored and monitored. Allowing an
intervening party a real time. Understanding of how many votes will be needed,
gain an electoral advantage. Are you saying the states that use that software did that? Well
No, I can prove that they did it in Michigan, but here's the real quicker- and I just to be clear: did you have any business in Georgia this year
No sir, not only this year, I've never had any business in Georgia age. They did it
absolutely in Phoenix Arizona about Eric Arizona, no sera they did it in
cities where they have corrupt machines that will protect it, meaning
Albania Philadelphia in Pittsburgh, Pennsylvania Cyril. We had no bees
as in any way, you know swing states over there. You know the contested states
Surely we didn't have any business in the? U S outside of L a county. Neither direct
we or indirectly. That's what's so, particularly crazy about this. Aside from providing software to L a county for its election,
smart man played no other role on the twenty twenty election. Its total nonsense,
consequences have been very real. There were the death threats which, by now,
sadly were familiar with the piss me off the most and then there's the money was. What was for you sort of the darkest moments of this you got in it due to a certain degree. Still is
of course darkest moment is it tat- is the moment that you started to recognise that the damage is being dawn is probably impossible to recover from
when you have basically one hundred percent of your customers around the world and prospects around the world. Panicking and basically,
everybody that works with you either tunnel. You they don't want. I want with you anymore. Some of them say you look with. We would love to work with you, but you know you're too toxic. We don't want the noise or asking for a million explanations right, because these there are seen these on Canada
Fox news in them in women once again of the most powerful and far reaching news
channel in the water is very hard to know if it's gonna come
ITALY wipe us out or if his Jews, gonna hate us very hard
and I don't know how long it would take assuming we will survive Bologna would take us too, to rebuild it's hard to say so deftly you know what we were expect
to be a magnificent business for the next decade.
It doesn't work that way anymore. So, just to the degree you can qualify it, how big a financial had to do take how much this has his costume.
Well I mean we have we look at our pipeline for the next five years and the university from forecast for the next five years and what we know with thought was: you know the most accurate forecast and then how we feel that forecast is being affected and then looked at all. They, of course, revenue than we think
that we are going to use because of these, and they will feel confident we're going to lose because of these, and of course it translates into last profit and that's how we reach
the two point- seven billion.
Two point: seven billion dollars: that's a lot of money and that's how much they decided to survive
there is, for
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When did you first speeches become aware that these allegations being made against more about it? So I had heard of the allegations about small Maddox just from watching tv, but I got contacted by Smart Maddox, I'm a little after thanksgiving, and they brought this to my attention and asked me to look into it.
When they first called me, it was obviously very somber. Conversation Erica
as a lawyer and Chicago, and when I entered
I decided to take action against Fox NEWS, Erika Zoo he reached out to, and so after I spoke with bound for about an hour.
Our I spend another hour just watching the news, clubs, the facts broadcasts to get my head around it.
And by the end of that, was very apparent to me that there had been a campaign, and that is what they were saying wasn't true. That was one of the biggest. This information campaigns I've ever seen
now, why just go after Fox there's other media outlets, notably news backs and oh Anne, and who have been just as aggressive about the stuff for war, stolen
to gaining and analyzing who to bring our lawsuits against. I think you can tell simply by the length of the complaint that we have filed, that they take a long time to put together and we do a lot of due diligence before we find them and so
is one step at a time, and certainly when we look at her
A microphone that could reach millions of people in the United States and billions of people across the world with this information, it's facts do not just going after them preserve deeper packets, you don't wanna earn a small table network facts has the biggest microphone they have. The biggest platform
and because of that they can do the most damage and now in your own career, and had you been? Is this something that is interested in this kind of political? This information? Were you looking for a case like this? I was not looking for a case like this. You know I.
First had a defamation k several years ago for a company based in South Dakota, and that was the first time ever Donna defamation case before, and it happened to be the largest defamation case that has ever been filed.
What Iraq is not fully saying here is that there is a reason he was chosen for this job and twenty seventeen.
In his partner one, the largest settlement in the history of american media defamation, and now us
Darling ABC News investigation. A whistle blower has come forward to tell Consumerism
the ground beef, a lot of us by at the supermarket representative beef production company, whose product was described rather unappetizing, leave ABC News as pink sly, pink, slime, sliding sly we're talking about
and finally textured beef. It's the component in ground mean major ninety miles, north ensue city. You can actually true so pretty clear line from there to here to going after the red slime,
information in some cases are right, lies coming from the conservative media world at a moment when it
the unclear how to stop that slime and as the consequences of its
rather becoming more and more clear and feeling more.
More dangerous to american democracy? Erics approach to making it stop is to make it heard very badly financially for the people spreading it. The way you can sometimes send a message
as with damages, and there are occasions where a company like smart matters, has been damaged so much that the recovery that they are entitled to receive is significant, even for a company s biggest facts, and I think that sends a message, and hopefully people don't want to be the next facts. So in that where Eric says this lawsuit is very tangible way of combating this information, a problem which can feel so impact.
The boy in a smart Maddox, doesn't have the microphone that facts as they can turn out and put somebody on the air and immediately reach hundreds of millions of people, but what they can do is they can follow suit like this. That is an opportunity for Smart Maddox to correct the record in a fair way in a way that they can't do any warehouse. Here's where I need it
my own cards abet until about a year ago, I ran Buzzfeed NEWS and in that role actually was known for a pretty aggressive belief in the media is right to publish. In particular, I decided to publish the steel dossier when traditional news outlets would not the thirty five page document prepared by a former british spy alleges that trunk campaign colluded with the Russians and includes uncorroborated salacious allegations about Trump himself. I knew it had unconfirmed and even false information at it, and we made that clear when we published at Ben. You made the call when this happened. Do you have any regrets about publishing this entire document, but I also thought the public has a right to steer the default. Now is, if you want your audience to trust you
and after you don't just our job is not to keep primarily to be gatekeepers to decide what to suppress and keep from our audience is primarily to share with our audience what we ve got: a major media, the tattered and politicians. Intelligence officials is CNN and even reported that it existed and had been brief to two presidents of the United States. The president, the president.
The american people were basically the only ones who haven't seen it we'll exactly one.
A year ago, tonight Buzzfeed release the Trump dossier to the public, even though they couldn't verify any of its content, some of which were scandalous installations. We blasted format the time now they're getting shewed, and I was soon over that decision by people mentioned them. It s, ear
Like most editors, I've been on the receiving end of a number of defamation threats of assets, and so, in general,
been a highly sceptical alarmed by lawsuits? Try to stop media organisations from getting information,
the world, but I have to confess the events of the past few years have started shake my conviction, a bear as I've watched misinformation run rampant and system after system fail. I found myself hesitantly open to the idea that Eric, maybe I do something that
it's maybe one of the few tools available, but I'm still really wary of applications.
They have to says egos and, as you probably know I mean I've spent my career as rapporteur and occasionally as a defended in these cases and the way companies.
Defamation law makes me nervous and if you look at the meat to movement, a lot of important stories were kept silent. Because of here, because of
the threats, and I worry that maybe journalists who think that Fox NEWS was doing crazy staff will surely this case
only to see tightened defamation laws, kind of suppress all sorts of true stories. We should we be worried about that. I dont think any reporter that does his or her job and pay attention to the facts and reports. What they believe to be true has anything to worry about with a case like this
This is a case where we are lagging a story was simply fabricated and when you found
he had a story and caused great damage there.
You should be worried about that, but I don't think that's something that most responsible journalists down. I certainly agree with you on that, but that huge
Do you wanna Guest ABC News was not a
do you didn't pelagic had a vast conspiracy to make something up from scratch? I think you'll edge the series of errors that word
you know allegedly damaging to your clients and that's the kind of thing that makes me nervous that news operation is crippled over
You know allegedly misrepresenting some beef processing processes guarantees all all part of the same fabric. The burden of proof on a of bringing the defamation case is very high, and so the courts have provided a lot of protection for journalists.
The responsible journalists don't have anything to worry about their, not an argument. We lose the ones who are transgressing your norms. Transgressing your responsibilities are the ones that are in the crosshairs for these types of assets, there's already some evidence to be found that is lost if serving a real impact. Long before they come close to being decided fact style back its claims about the election late last year after threats from smart-
and then this week is at EU level. Joining a sad to discuss is the founder and see my pillow and the other of the book. Why?
The odds, my boy, my thank you so much for joining us at work
So what will happen with your twitter account?
and the accompanying page. It showed the sea of a company called my pillar in an appearance. Undue snacks he'd been invited to come on to discuss, cancel culture and deeply forming. He just been kicked off twitter for spreading false claims about election fraud. Well by mistake at all, because we are all the election problem, machine real but nature.
I got my Crawley wanted to talk about was his belief in the fraud itself. It was my very much like you're talkin about machines. Do we use back another even aware by any of those kinds of allegations,
We had a clearly terrified news MAX anchor literally pulled out a document. Let me read you some day there there were some.
Evidence and began reading. What was obviously a corporate statement they ve been given the election result in every state were certified and NEWS Max accepts the result of legal and final.
Language, to make very clear that this news organization does not believe. Fraud occurred after weeks, of course, of saying it did and weeks of saying. Smart magic was part of that. Did you see that clip of the sea of my pillar a news max getting kind of cut off to the point where one of the hosts walks away as he tries to spread election misinformation? What do you make of that? I saw a new smacks reacting to the fact that they had received a retraction demand mutter from small matter,
and trying to take a step to make sure that they don't make the situation any worse. Thank you against taking it up
Then what will obviously be following this one closely? I thank them.
a lot of us are following this closely wonder
with all our reservations, whether this loss, it could damp down some of the insanity, the sun
seems like its overran american politics, but there are real limits to at last. It can do there's another one, making its way through the courts right now. This wanting us Alex Jones, the enforce founder
I did so. The parents of children murdered at sandy hook, who have already forced Johns to acknowledge their kids, really did die that it wasn't theatre. Is he had claimed
but that doesn't make someone like Jones vanish. If you were watching the insurrection of the cap,
but at last month there he was with his ball horn, telling the crowd quote.
We want this election as long as you're, not too
a person or a company. There's no law
gets lie,
start.
Why
on Thursday afternoon in a statement to the Times Fox
responded to the lawsuit from Smart Matic. Saying quote: we are proud of our twenty twenty election,
words and all vigorously defend. This merit less lawsuit in court,
What do I back? You don't need to hear about
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Here's what else you need today on this well, they gave our two hundred and thirty and the knave are one hundred and ninety nine
Resolution is adopted in an unusual move. The House of Representatives voted to remove republican congresswoman Marjorie Taylor, green of Georgia.
The two committees on which she sets education and labour and budget over her history of spreading extreme bigoted and false information.
The vote was mostly along party lines. Just eleven Republicans backed the resolution and on Thursday lawyers for former President Trump rejected a request from how
impeachment managers that he testify during his send a trial. In a letter
The representative Jamie Rascal of Maryland, the lead house manager prosecuting the case law lawyers called their request
a cold public relations stunt. The trial is
scheduled to begin on Tuesday. Tidies episode was produced by Rachel, Cuesta Nina potluck, and only Spiegel
it was edited by LISA Tobin and MIKE Vanua. An engineer by Christmas
That's it for the daily unworkable by see you on Monday. What is decision hacked by fidelity its text?
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Transcript generated on 2021-03-24.