A federal judge has cleared the way for a massive defamation lawsuit against attorney Sidney Powell to move forward, rejecting her attempts to toss out the case brought by voting technology company Smartmatic.
In a ruling issued Monday, U.S. District Judge Carl Nichols denied Powell’s motion to dismiss the lawsuit, which accuses her of orchestrating a “disinformation campaign” following the 2020 presidential election. The decision means Smartmatic can continue its pursuit of damages for claims that Powell’s public statements regarding election rigging “irreparably tarnished” the company’s global brand.
Powell’s legal team argued for dismissal on several procedural and substantive grounds. They claimed the lawsuit—spanning over 500 paragraphs and 200 pages—was too long and repetitive, violating federal rules that require a “short and plain statement” of a claim.
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Judge Nichols disagreed, noting that while the complaint is lengthy, it is coherent and provides enough detail for Powell to prepare a defense. He also shot down the argument that two of Smartmatic’s international parent companies lacked standing to sue, ruling that the entities sufficiently alleged independent injuries to their own reputations and business interests.
A significant portion of the ruling addressed the overlap between defamation and “injurious falsehood”—a legal claim involving false statements that cause financial harm to a business.
Powell’s attorneys argued that under Florida law, a plaintiff cannot bring both types of claims for the same set of statements. However, the judge ruled that federal court rules allow plaintiffs to pursue “alternative” theories of liability at this early stage of litigation.
The court also found that Smartmatic had met the requirement of pleading “special damages” by citing specific financial losses, including:
- $400,000 for public relations and crisis management.
- $100,000 for cybersecurity enhancements.
- $700,000 for personnel recruitment and retention efforts.
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The lawsuit centers on a series of media appearances and press conferences where Powell allegedly claimed Smartmatic software was used to flip millions of votes. Powell argued that some of the claims in the lawsuit relied on statements made by others, such as former New York Mayor Rudy Giuliani or Fox News hosts.
Judge Nichols, however, pointed to specific remarks made by Powell—including her assertions of “massive election fraud” and “vulnerabilities” in the software—as enough to make the claims plausible.
With this hurdle cleared, the case is expected to move into the discovery phase, where both sides will exchange evidence and potentially sit for depositions. This case is separate from other high-profile defamation suits involving voting machine companies and the 2020 election, though it remains a focal point in the ongoing legal fallout from that period.
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