Fox News faces potential 'financial death penalty' due to Dominion lawsuit

Should Dominion Voting Systems be successful in winning its $1.6 billion defamation lawsuit against Fox News, it could have a devastating financial impact that would cloud its ability to survive.

In a column for MSNBC, former prosecutor and current host of her own show, Katie Phang, claimed the network is looking at a "financial death penalty" because there is no cap on punitive damages.

The legal expert noted that "Fox is now trapped in an ever-worsening spiral of lies of its own creation. Time and time again, Fox allegedly trafficked in lies and falsehoods."

Weighing against the network's defense over spreading lies about the 2020 presidential election, with on-air personalities pointing the finger at Dominion among others, are texts and private emails where execs and hosts admitted to each other they knew they were trafficking in lies.

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According to Phang, "Dominion doesn’t just have the upper hand, it has the truth on its side. If Dominion is successful, then all that would be left to determine is the amount of damages that Dominion is entitled to receive. That’s where the numbers become astronomical. Dominion is seeking $1.6 billion in lost profits and reputational harm."

Beyond that $1.6 billion, is the prospect of punitive damages that could also be in the billions -- putting the financial stability of the network at risk.

Dominion is "also seeking punitive damages, which are not capped under New York state law and could also be in the billions of dollars. Punitive damages are intended to punish the wrongdoer and to deter others from repeating that egregious conduct. And a multi-billion-dollar punitive damages verdict would not just punish Fox News. It would send a ringing message to all media companies to keep themselves in check and uphold the truth."

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