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.

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.

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.

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.

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

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.