A court in New York has rejected a bid from Fox Corp. to toss a lawsuit from voting systems provider Smartmatic against Fox News. The New York appeals court on Thursday upheld a previous ruling denying Fox Corp.

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.

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.

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.

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 state appeals court ruled on Thursday that Fox Corporation (NASDAQ:FOX) (NASDAQ:FOXA), parent of Fox News Network, must face a $2.7 billion defamation lawsuit filed by Smartmatic—a UK based voting machinery company.

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.

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