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.

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.

A New York appeals court ruled Thursday that Fox Corporation must face Smartmatic’s mammoth defamation lawsuit over the airing of 2020 election lies on Fox News, dealing a blow to the Rupert Murdoch-controlled media giant.