Fox News' right to lie was upheld in court

Fox News lies, and courts have ruled that it is legal for them to do so: http://www.projectcensored.org/publications/2005/11.html

"In February 2003, a Florida Court of Appeals unanimously agreed with an assertion by FOX News that there is no rule against distorting or falsifying the news in the United States."

You might also want to read: "Lies and the Lying Liars Who Tell Them: A Fair and Balanced Look at the Right" by Al Franken which points out several of Bill O'Riely's many lies.