https://www.nytimes....896ed87b2d9c72a
Antonio Mugica was in Boca Raton when an American presidential election really melted down in 2000, and he watched with shocked fascination as local government officials argued over hanging chads and butterfly ballots.
It was so bad, so incompetent, that Mr. Mugica, a young Venezuelan software engineer, decided to shift the focus of his digital security company, Smartmatic, which had been working for banks. It would offer its services to what would obviously be a growth industry: electronic voting machines. He began building a global company that ultimately provided voting machinery and software for elections from Brazil to Belgium and his native Venezuela. He even acquired an American company, then called Sequoia.
Last month, Mr. Mugica initially took it in stride when his company’s name started popping up in grief-addled Trump supporters’ wild conspiracy theories about the election.
“Of course I was surprised, but at the same time, it was pretty clear that these people were trying to discredit the election and they were throwing out 25 conspiracy theories in parallel,” he told me in an interview last week from Barbados, where his company has an office. “I thought it was so absurd that it was not going to have legs.”
But by Nov. 14, he knew he had a problem. That’s when Rudy Giuliani, serving as the president’s lawyer, suggested that one voting company, Dominion Voting Systems, had a sinister connection to vote counts in “Michigan, Arizona and Georgia and other states.” Mr. Giuliani declared on Twitter that the company “was a front for SMARTMATIC, who was really doing the computing. Look up SMARTMATIC and tweet me what you think?”
Soon his company, and a competitor, Dominion — which sells its services to about 1,900 of the county governments that administer elections across America — were at the center of Mr. Giuliani’s and Sidney Powell’s theories, and on the tongues of commentators on Fox News and its farther-right rivals, Newsmax and One America News.
“Sidney Powell is out there saying that states like Texas, they turned away from Dominion machines, because really there’s only one reason why you buy a Dominion machine and you buy this Smartmatic software, so you can easily change votes,” the Newsmax host Chris Salcedo said in one typical mash-up on Nov. 18. Maria Bartiromo of Fox Business reported on Nov. 15 that “one source says that the key point to understand is that the Smartmatic system has a backdoor.”
Here’s the thing: Smartmatic wasn’t even used in the contested states. The company, now a major global player with over 300 employees, pulled out of the United States in 2007 after a controversy over its founders’ Venezuelan roots, and its only involvement this November was with a contract to help Los Angeles County run its election.
In an era of brazen political lies, Mr. Mugica has emerged as an unlikely figure with the power to put the genie back in the bottle. Last week, his lawyer sent scathing letters to the Fox News Channel, Newsmax and OAN demanding that they immediately, forcefully clear his company’s name — and that they retain documents for a planned defamation lawsuit. He has, legal experts say, an unusually strong case. And his new lawyer is J. Erik Connolly, who not coincidentally won the largest settlement in the history of American media defamation in 2017, at least $177 million, for a beef producer whose “lean finely textured beef” was described by ABC News as “pink slime.”
Now, Mr. Connolly’s target is a kind of red slime, the stream of preposterous lies coming from the White House and Republican officials around the country.
“We’ve gotten to this point where there’s so much falsity that is being spread on certain platforms, and you may need an occasion where you send a message, and that’s what punitive damages can do in a case like this,” Mr. Connolly said.In an era of brazen political lies, Mr. Mugica has emerged as an unlikely figure with the power to put the genie back in the bottle. Last week, his lawyer sent scathing letters to the Fox News Channel, Newsmax and OAN demanding that they immediately, forcefully clear his company’s name — and that they retain documents for a planned defamation lawsuit. He has, legal experts say, an unusually strong case. And his new lawyer is J. Erik Connolly, who not coincidentally won the largest settlement in the history of American media defamation in 2017, at least $177 million, for a beef producer whose “lean finely textured beef” was described by ABC News as “pink slime.”
Now, Mr. Connolly’s target is a kind of red slime, the stream of preposterous lies coming from the White House and Republican officials around the country.
“We’ve gotten to this point where there’s so much falsity that is being spread on certain platforms, and you may need an occasion where you send a message, and that’s what punitive damages can do in a case like this,” Mr. Connolly said.
Mr. Mugica isn’t the only potential plaintiff. Dominion Voting Systems has hired another high-powered libel lawyer, Tom Clare, who has threatened legal action against Ms. Powell and the Trump campaign. Mr. Clare said in an emailed statement that “we are moving forward on the basis that she will not retract those false statements and that it will be necessary for Dominion to take aggressive legal action, both against Ms. Powell and the many others who have enabled and amplified her campaign of defamation by spreading damaging falsehoods about Dominion.”
These are legal threats any company, even a giant like Fox Corporation, would take seriously. And they could be fatal to the dream of a new “Trump TV,” a giant new media company in the president’s image, and perhaps contributing to his bottom line. Newsmax and OAN would each like to become that, and are both burning money to steal ratings from Fox, executives from both companies have acknowledged. They will need to raise significantly more money, or to sell quickly to investors, to build a Fox-style multibillion-dollar empire. But outstanding litigation with the potential of an enormous verdict will be enough to scare away most buyers.
And so Newsmax and OAN appear likely to face the same fate as so many of President Trump’s sycophants, who have watched him lie with impunity and imitated him — only to find that he’s the only one who can really get away with it. Mr. Trump benefits from presidential immunity, but also he has an experienced fabulist’s sense of where the legal red lines are, something his allies often lack. Three of his close aides were convicted of lying, and Michael Cohen served more than a year in prison. (Trump pardoned Michael Flynn and commuted the sentence of Roger Stone.)
OAN and Newsmax have been avidly hyping Mr. Trump’s bogus election claims. OAN has even been trying to get to Newsmax’s right, by continuing to reject Joe Biden’s status as president-elect. But their own roles in propagating that lie could destroy their businesses if Mr. Mugica sues.
The letters written by lawyers for Smartmatic and Dominion are “extremely powerful,” said Floyd Abrams, one of the country’s most prominent First Amendment lawyers, in an email to The New York Times. “The repeated accusations against both companies are plainly defamatory and surely have done enormous reputational and financial harm to both.”
Mr. Abrams noted that “truth is always a defense” and that, failing that, the networks may defend themselves by saying they didn’t know the charges were false, while Ms. Powell may say she was simply describing legal filings.
“It is far too early to predict how the cases, if commenced, will end,” he said. “But it is not too early to say that they would be highly dangerous to those sued.”