Judge rules Fox News can't depose Democratic megadonor as part of Smartmatic suit

A judge on Thursday ruled that Fox News cannot depose a Democratic megadonor as part of an ongoing multibillion-dollar defamation lawsuit brought against the network by voting machine company Smartmatic.

Reid Hoffman -- the co-founder of LinkedIn and prominent Democrat donor - previously invested in Smartmatic to help boost them in their litigation against Fox News and others. As such, Fox News sought a deposition from Hoffman in order to find out what he learned about the company's finances.

Instead, a judge ordered that Hoffman's associate -- Dmitri Mehlhorn -- can be deposed instead.

Smartmatic is suing Fox News for $2.7 billion after the company said the network spread false claims about them rigging the 2020 election in favor of Joe Biden. Fox News has maintained that it was airing newsworthy allegations. and has disputed Smartmatic's damages claims.

During a hearing in downtown Manhattan on Thursday, Fox News argued that Hoffman and Melhorn had "relevant information" about Smartmatic's finances following a meeting they had with the company's CEO -- information Fox News claimed could undercut Smartmatic's claims of financial loss.

Hoffman and Melhorn received "a briefing from the CEO of the company," Fox New's attorney Winn Allen said, during which the CEO "described Smartmatic's revenue, profit, and growth over time."

"Those are key issues," Allen said.

In an interview with the Washington Post last year, Melhorn told the publication that Smartmatic "could be a $400 million company right now if not for the slander and the smears." Fox has highlighted that comment as they argue that Smartmatic's damages claims are "a complete and total fiction."

But an attorney for Hoffman told the judge that any information he received on financials from the company before his "political" investment was brief and broad.

"It's very shaky and unreliable evidence to chase down," Hoffman's attorney argued, "and there's a real risk of burden and harassment."

In a statement responding to the ruling, Fox News said they are "eager and ready to continue defending our press freedoms and look forward to deposing Dmitri Mehlhorn."