Fox News settlement with Dominion would 'likely be big' because firm has 'very strong case': NYT journalist
Laura Ingraham speaking at the 2015 Conservative Political Action Conference (CPAC) in National Harbor, Maryland. (Gage Skidmore/Flickr)

Fox News on Thursday lost a key decision that allowed Dominion Voting Systems' defamation lawsuit against the cable news network to continue.

Delaware Superior Court Judge Eric M. Davis, who ruled against Fox News' attempt to throw out Dominion's lawsuit, issued a ruling in which he cast doubt the network's truthfulness given how well documented the charges in the Dominion suit have been.

“For purposes of the Motion, the Court must view all well-pled facts alleged in the Complaint as true and in a light most favorable to Dominion,” he argued. “If the plaintiff offers ‘some direct evidence’ that the statement ‘was probably false,’ the Court can infer that the defendant ‘inten[ded] to avoid the truth.’”

READ MORE: Court can ‘infer’ Fox News ‘intended to avoid the truth’: Judge lets $1.6 billion defamation lawsuit to go forward

New York Times media columnist Ben Smith analyzed the judge's ruling by noting that Fox News lost the "key motion" in its efforts to get the suit thrown out.

"Cases often settle at this point, and a settlement here would likely be a big number," Smith wrote on Twitter. "It's a very strong case."