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Case 20-33332-KLP Doc 911 Filed 02/11/21 Entered 02/11/21 10:37:51 Desc Main Document Page 1 of 2 PROOF OF PUBLICATION 21 ___________________________Feb-10, 20___ /͕ĚŐĂƌEŽďůĞƐĂůĂ͕ŝŶŵLJĐĂƉĂĐŝƚLJĂƐĂWƌŝŶĐŝƉĂůůĞƌŬŽĨƚŚĞWƵďůŝƐŚĞƌŽĨ Ă ĚĂŝůLJŶĞǁƐƉĂƉĞƌŽĨŐĞŶĞƌĂůĐŝƌĐƵůĂƚŝŽŶƉƌŝŶƚĞĚĂŶĚƉƵďůŝƐŚĞĚŝŶƚŚĞŝƚLJ͕ŽƵŶƚLJĂŶĚ^ƚĂƚĞŽĨEĞǁzŽƌŬ͕ ŚĞƌĞďLJĐĞƌƚŝĨLJƚŚĂƚƚŚĞĂĚǀĞƌƚŝƐĞŵĞŶƚĂŶŶĞdžĞĚŚĞƌĞƚŽǁĂƐƉƵďůŝƐŚĞĚŝŶƚŚĞĞĚŝƚŝŽŶƐŽĨ ŽŶƚŚĞĨŽůůŽǁŝŶŐĚĂƚĞŽƌĚĂƚĞƐ͕ƚŽǁŝƚŽŶ Feb 10, 2021, NYT & Natl, pg B3 ͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺ ^ǁŽƌŶƚŽŵĞƚŚŝƐϭϬƚŚĚĂLJŽĨ &ĞďƌƵĂƌLJ͕ϮϬϮϭ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ EŽƚĂƌLJWƵďůŝĐ Case 20-33332-KLP Doc 911 Filed 02/11/21 Entered 02/11/21 10:37:51 Desc Main C M Y K Nxxx,2021-02-10,B,003,Bs-BW,E1Document Page 2 of 2 THE NEW YORK TIMES BUSINESS WEDNESDAY, FEBRUARY 10, 2021 N B3 MEDIA Reddit Raises Fox Seeks to Dismiss Election Lawsuit Times Places $250 Million, By MICHAEL M. GRYNBAUM A Top Editor and JONAH E. BROMWICH Pushing Value Rupert Murdoch’s Fox Corpora- In the Office tion filed a motion on Monday to To $6 Billion dismiss the $2.7 billion defamation Of Its Publisher lawsuit brought against it last By MIKE ISAAC week by the election technology By MARC TRACY company Smartmatic, which has SAN FRANCISCO — Fresh off a win- The New York Times announced accused Mr. Murdoch’s cable net- ning Super Bowl ad and a role at on Tuesday that one of its highest- works and three Fox anchors of the center of a recent stock mar- ranking editors, Rebecca Blumen- spreading falsehoods that the stein, will take on a newly created ket frenzy, Reddit announced on company tried to rig the presiden- role, reporting directly to the pub- Monday that it had raised $250 tial race against Donald J. Trump. lisher, A. G. Sulzberger, and help- million in new funding, valuing The lawsuit has roiled right- ing him run newsroom operations the social news start-up at $6 bil- wing news media outlets whose as the newspaper’s business ex- lion as it aims to turbocharge user star personalities repeatedly cast pands. growth and double its work force. doubt on President Biden Jr.’s vic- Ms. Blumenstein, 54, a deputy The investment is a shot in the tory and raised the specter of a managing editor, has overseen arm for Reddit, which since 2005 significant financial penalty for The Times’s website, including has focused on building digital Fox. On Friday, the day after the the live briefings that became cen- communities around topic-based lawsuit was filed, Fox canceled tral to coverage of breaking news message boards. The latest fund- the nightly Fox Business program in the last year. She will remain on ing, led by Vy Capital with partici- hosted by Lou Dobbs, who is The Times’s masthead with a new pation from previous investors named in the suit with the Fox an- title: deputy editor, publisher’s of- like Andreessen Horowitz, Se- chors Maria Bartiromo and Jean- fice. quoia Capital and Tencent Hold- ine Pirro. “Rebecca will step away from ings, doubles Reddit’s valuation In its 44-page response filed in the news cycle to become my day- from its last financing in 2019. New York State Supreme Court, to-day partner in supporting our Reddit, which is based in San Fox argues that the claims of elec- DREW ANGERER/GETTY IMAGES journalism operations at a time Francisco, said the funding built toral fraud made on its channels Fox Corporation filed a motion in the $2.7 billion lawsuit brought by the election technology company Smartmatic. when they are growing rapidly in on the success of its burgeoning by Mr. Trump’s lawyers — includ- size and ambition,” Mr. Sulzberger advertising business, as brands ing Rudolph W. Giuliani and Sid- wrote in a memo to staff on Tues- and marketers are attracted to the ney Powell, who are also named in ering the news. “They’re arguing alleges that Mr. Trump’s lawyers dent of Venezuela, Hugo Chávez, day. site’s powerful and active commu- the defamation suit — were mat- that shields Fox News as an orga- used Fox’s platform, and its sym- assisted the company in creating Before joining The Times four nity members. ters of significant interest to view- nization for simply reporting on pathetic anchors, to spin conspira- software that could covertly alter years ago, Ms. Blumenstein was “We have come a long way in re- ers and handled fairly. the controversy, which is a matter cies about the company that dam- votes. (Mr. Chávez died in 2013 the deputy editor in chief of The cent years to focus more on the “This lawsuit strikes at the of public interest,” he said. aged its reputation and commer- and had nothing to do with Smart- Wall Street Journal, where she needs of the hundreds of thou- heart of the news media’s First A key to Fox’s defense is the ar- cial prospects. The suit has been matic.) had been the China bureau chief, Amendment mission to inform on gument that it cannot be held re- applauded by those seeking to In other exchanges cited by international editor, Page One edi- matters of public concern,” Fox sponsible for statements made on curb the flow of disinformation Smartmatic, Fox anchors alter- tor and managing editor of its says in the motion. “An attempt by its programs by Mr. Giuliani and from right-wing news outlets, but nately expressed support and as- website. a sitting president to challenge the Ms. Powell, given their roles as it has also raised questions about tonishment as Mr. Giuliani and In the new role, Ms. Blumen- result of an election is objectively Mr. Trump’s legal representa- the limits of speech in a changing Ms. Powell spun out their claims. stein will focus on diversity in the newsworthy.” tives. media landscape. In one case, a phrase used by Ms. newsroom, the plans for a post- Paul D. Clement, a partner in “The public had a right to know, Fox’s argument in its motion — Powell — “cyber Pearl Harbor” — pandemic return to the office and the Washington office of the law and Fox had a right to cover, that that it provided a forum for news- was later invoked by Mr. Dobbs on the challenge of remaining an in- firm Kirkland & Ellis who served the president and his allies were worthy interviews — may cut into his show and on social media. dependent voice in a hyperparti- as solicitor general under Presi- accusing Smartmatic (and oth- the conceptual heart of Smartmat- Fox’s response on Monday in- san landscape, Mr. Sulzberger dent George W. Bush, is leading ers) of manipulating the election ic’s case, which groups Fox, its cluded a 14-page appendix under said in the Fox’s defense. “Smartmatic’s the- results, regardless of the ultimate hosts and their guests as defend- the title “Fox’s Evenhanded Cov- memo. ory is fundamentally incompati- truth or accuracy of those allega- ants who collaborated to spread erage of Smartmatic,” document- Ms. Blumen- ble with the reality of the modern tions,” the motion reads. It also as- falsehoods. ing instances from Fox News and stein said in an news network and deeply rooted serts that Smartmatic’s suit does The defamation lawsuit cites Fox Business that the company interview that principles of free speech law,” Mr. not identify defamatory state- exchanges on Fox programs that, believes showed skepticism to- Mr. Sulzberger Clement said in a statement. ments by television hosts em- Smartmatic said, helped spread ward the Trump team’s claims. approached her A spokesman for Smartmatic ployed by Mr. Murdoch’s com- the false claim that it was the Among the examples are three a few weeks did not reply to a request for com- pany. owner of a rival election tech com- identical, pretaped fact-checking ago. “I will re- ment. Fox also argues that Smart- pany, Dominion Voting System, segments that ran in mid-Decem- ally miss the HORACIO VILLALOBOS/GETTY IMAGES “It’s a strong move on their part matic should be considered a pub- and that it provided its services to ber on programs hosted by Ms. Rebecca newsroom,” she Steve Huffman, the head of Reddit, to try to come out and dismiss the lic figure. That argument, which is districts in multiple contested Bartiromo, Mr. Dobbs and Ms. Blumenstein said, “but I can which was part of a market frenzy. claim,” said Timothy Zick, a pro- likely to be contested by the tech states. In fact, Smartmatic was Pirro and that featured Eddie Pe- see areas where I could help The fessor at William & Mary Law company, means that Smartmatic used in the 2020 election only by rez, an election expert who de- Times at this important moment.” School who specializes in First must meet a high bar to prove that Los Angeles County. bunked a number of false claims sands of communities that make “The news business is facing so Amendment law. it was defamed: demonstrating And Smartmatic offers vivid ex- about Smartmatic. many challenges,” she added. “We up Reddit,” the company said in a Mr. Zick said Fox was making that the defendants knew their amples of Fox programming that The segments were broadcast have to do whatever we can to see blog post. “We have dedicated use of the concept of “neutral re- statements were false, or at least spread bizarre falsehoods, like a after Smartmatic sent a letter to around the corner of what’s com- ourselves to Reddit because we portage,” arguing that it could not had serious doubts about them. claim by Ms. Powell made on Mr. Fox demanding retractions and ing and make sure The Times is believe in the power of communi- be sued for defamation while cov- Smartmatic’s 276-page lawsuit Dobbs’s show that a former presi- threatening legal action.
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