The Week in Business: A Trial With a Twist
What’s Up? (April 16-22)
Fox News Settles
Fox News’s highly anticipated trial with Dominion Voting Systems, the voting machine maker that accused the network of spreading lies about the 2020 presidential election on its programs, ended before it began. In an unexpected twist in the courtroom on Tuesday — after jurors had been selected and opening statements delayed — Fox News agreed to a $787.5 million settlement. Dominion had been seeking $1.6 billion in damages. But even at less than half that amount, the settlement is still one of the largest ever in a defamation case. Though Fox did not apologize for its falsehoods, the company acknowledged in a statement that “certain claims” it made about Dominion were false. And Fox may face more consequences; the cable news network remains entangled in multiple legal battles, including a defamation suit from another election technology company, Smartmatic, which is seeking an even larger amount: $2.7 billion. Dominion also has other pending litigation against Rudolph W. Giuliani and One America News Network related to false claims of election fraud.
A Looming Strike in Hollywood
Thousands of television and film writers are ready to walk on the picket lines if they can’t reach an agreement with Hollywood’s biggest studios by the end of the month. Last week, more than 9,000 of those writers, represented by the Writers Guild of America, voted to authorize a strike, giving union leaders the ability to call for a walkout when the writers’ contract expires on May 1. Writers say their pay and working conditions have not kept pace with the streaming-era boom. The Alliance of Motion Picture and Television Producers, a trade association that bargains on behalf of Hollywood production companies, said its goal was to “reach a fair and reasonable agreement.” In the meantime, Hollywood executives have begun to prepare for the possibility of a strike, which would first disrupt late-night television shows and then scripted television.
Tax Credit Confusion
Cashing in on the federal tax credits promised to buyers of electric vehicles became more complicated last week, when the Treasury Department placed additional limitations on which models qualify. Caveats released in August said vehicles and plug-in hybrids assembled outside North America were not eligible for the $7,500 credit. Now, a new policy from the department requires that a certain percentage of the components and minerals in a car’s battery be sourced in the United States or from its trade allies. That means just 11 electric cars from a handful of automakers qualify for the full tax credit, while several others meet the standard for a partial $3,750 credit. The list of eligible vehicles is expected to grow as carmakers fine-tune their supply chains and catch up with demand. That could take a while, though: Automakers have been struggling to scale up their production because of problems with sourcing the materials they need.
What’s Next? (April 23-29)
Checking In on a Struggling Bank
Last month, 11 of the country’s largest banks came together to inject $30 billion into First Republic, a midsize bank that teetered on the brink of collapse after the failures of two other banks had sent shock waves through the banking sector. So, did it work? When the bank reports its quarterly earnings this week, analysts expect to see an enormous flight of deposits — that is, customers pulling their money from the bank — and losses. If there is no deal to sell a stake in First Republic or a plan to shepherd it through these hard times, its stock is likely to plummet and add to the pressure on the bank.
Article source: https://www.nytimes.com/2023/04/23/business/the-week-in-business-fox-news-dominion.html