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A New York state judge has ruled that Fox News cannot depose LinkedIn founder Reid Hoffman in the ongoing $2.7 billion defamation case brought against the broadcaster by Smartmatic. The case stems from claims that Fox News aired false allegations regarding the company’s involvement in rigging the 2020 election.

In a ruling issued Thursday, Justice David B. Cohen denied Fox’s request to question Hoffman about his $25 million investment in Smartmatic, specifically regarding discussions he had with Smartmatic CEO Antonio Mugica. However, the judge permitted limited questioning of Hoffman’s adviser, Dmitri Mehlhorn, regarding financial projections and business valuations Smartmatic shared during the investment talks.

Fox had hoped to gain insight into the valuation of Smartmatic by questioning Hoffman and Mehlhorn about the company’s worth, particularly in light of statements Mehlhorn made regarding the company’s potential value. The judge dismissed this as irrelevant to the case, stating that such inquiries would offer no substantial evidentiary value.

Smartmatic’s defamation suit against Fox News alleges that the network amplified false conspiracy theories about the 2020 election, severely damaging the company’s reputation and business. Fox News has denied the allegations, claiming that the company inflated its damages claims.

“The valuation of Smartmatic was a minimal aspect of Hoffman's investment decision, and therefore, his impressions are not relevant to the defamation case,” said Justice Cohen in his decision. “The focus should remain on the allegations of defamation and the harm caused by Fox’s statements.”

Despite the limitations on the deposition, Fox News’ legal team expressed disappointment over the ruling, with attorney K. Winn Allen emphasizing the significance of Hoffman’s involvement in the case.

Fox News has consistently denied any wrongdoing, asserting that Smartmatic’s business reputation was already suffering before the network aired claims related to election fraud. The broadcaster has also pointed to a separate foreign bribery case involving two former Smartmatic executives as part of its defense strategy.

The Smartmatic case continues to move forward in New York’s Supreme Court, with summary judgment briefs due by the end of the month.