This is a RUSH transcript from "The O'Reilly Factor," July 16, 2010. This copy may not be in its final form and may be updated.

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BILL O'REILLY, HOST: Now for the top story tonight: Megyn Kelly is mentioned in that Newsweek article as one who is driving the [Black Panther] story unfairly. She joins us now. All right. We'll get to the Newsweek thing in a moment. But why do you feel so passionately about the Panther story when there's only eight Panthers? It's a very minuscule organization.

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MEGYN KELLY, ANCHOR, "AMERICA LIVE": Yeah. It's not about the Panthers. I got involved in this more seriously, more extensively once the DOJ whistleblower came on…

O'REILLY: Came on your show.

KELLY: …and gave us…

O'REILLY: Adams.

KELLY: …his first television interview.

O'REILLY: Right.

KELLY: And the reason that I'm passionate about this case and this story, Bill, is because I believe in fidelity to the law. And I feel like your viewers know that about me. It doesn't matter whether it's left or right, conservative or liberal, I try to follow the law. I try to give you an honest interpretation of what the law requires, whether it's from defending Justice Ginsburg to defending those crazies from the Westboro Baptist Church and their free speech rights. And it's not always popular, but I try to see honestly what the law requires. And what this whistleblower is alleging is that there is not fidelity to the law at the Department of Justice right now.

O'REILLY: But remember, according to Newsweek, he's a Bush guy.

KELLY: Well, that's the thing. OK, so they try to discredit J. Christian Adams…

O'REILLY: Right.

KELLY: …by saying he's a conservative, which apparently he is. So that's fine. So that's what you've got. He's a conservative. Based on that, and the fact that he was hired at the DOJ at a time where they tended to hire more conservative people, they dismissed his sworn testimony. They besmirch a lawyer of 18 years.

O'REILLY: Well, it doesn't matter. If he's a Bush guy, he's lying, of course.

KELLY: OK, so, but the viewers can make their minds about whether they believe…

O'REILLY: No, I'm being facetious. All right.

KELLY: But I'm just saying…

O'REILLY: So let me stop you here.

KELLY: So that's fine. They can make up their minds one way. But the question is why isn't there an investigation? Why don't people actually want to get down to the truth?

O'REILLY: OK, but I'm more interested in you and your passion here. OK, so you are saying that because in your opinion from what you've heard and seen on the videotape, there was an illegality that took place in the Philadelphia polling…

KELLY: Yes, because what people forget to say, they always say, oh, nobody actually testified to voter intimidation. No. 1, that's not true. I've read the testimony, unlike almost everybody who comments on this case. And it wasn't just Bartle Bull. It was another guy named Chris Hill, who testified that in particular there was a black poll watcher there who was very shaken up, who was visibly upset, who demanded that the police be called, because he was called…

O'REILLY: And the police were called.

KELLY: He was called a race traitor…

O'REILLY: Right.

KELLY: …and told him if he stepped outside, there would be hell to pay. That was a black poll watcher. Plus, they testified at least three voters turned away.

O'REILLY: OK, all right, so there is enough evidence, and I've said that on "The Factor" from the jump.

KELLY: And even attempt at intimidation is…

O'REILLY: …to go and prosecute. All right, so we believe, Kelly and O'Reilly both believe and even maybe Ruth Bader Ginsburg would agree with us, maybe, all right, that there's enough evidence to go forward to prosecute the case, but it wasn't prosecuted.

KELLY: Right.

O'REILLY: But the real atrocity is the attorney general blew it off and didn't even explain why. He's just hiding.

KELLY: Well, that's the thing.

O'REILLY: OK.

KELLY: OK, go ahead.

O'REILLY: So that's the fact. Enough evidence, attorney general of the United States doesn't feel that the American people deserve an explanation of his behavior. So it's a big story. But Newsweek…

KELLY: Well, he's come out and said the facts in the law weren't there.

O'REILLY: But that's bull.

KELLY: But that's the problem.

O'REILLY: That's bull. If he doesn't know they're there, then he doesn't deserve to be attorney general because they certainly are there.