Trial begins over claims Newsmax defamed Smartmatic in reporting on 2020 election

A defamation lawsuit against Newsmax Media begins Thursday over allegations that the conservative media damaged Smartmatic by airing false claims that the voting machine company helped steal the 2020 U.S. presidential election from Donald Trump.

The trial in Wilmington, Delaware, will begin with the selection of 12 jurors who will determine whether Newsmax intentionally avoided the truth about the 2020 election to harm Smartmatic or whether it fairly reported claims made by Trump and his allies.

Trump lost the 2020 election to President Joe Biden, but has repeatedly claimed, without evidence, that the election was rigged.

Opening arguments are scheduled for Monday.

The stakes for Newsmax, a small company, are huge. A lawyer for the broadcaster described the case as “bet your company” litigation in a September 16 court hearing. Newsmax said in an investor presentation in June that it hopes to file for an initial public offering of its stock as soon as this year.

Related: Judge rejects Newsmax’s bid to restrict Smartmatic suit for 2020 US election

The four-week trial is expected to end just days before the 2024 election, in which Trump is locked in a tight race with Vice President Kamala Harris.

Smartmatic sued Newsmax in 2021, alleging that it falsely claimed that the company changed votes in the 2020 election, that its machines were hacked, and that it was funded by corrupt dictators. Smartmatic said its reputation was damaged and it lost business opportunities.

Smartmatic said the alleged false reporting paid off for Newsmax. Trump boosted Newsmax’s social media coverage, and the broadcaster’s audience grew 10-fold after the election, passing rivals like CNBC and Fox Business, according to Nielsen Ratings.

Smartmatic said its machines were only used in Los Angeles County in the 2020 election and that it had never experienced a security breach with its equipment, which has recorded billions of votes, mostly in non-US elections.

“We look forward to presenting evidence of his wrongdoing, questioning top Newsmax executives about his coverage and asking the jury to hold them accountable,” Smartmatic said in a statement.

The news institute, which, like US affiliate Smartmatic, is based in Boca Raton, Fla., said it had the right to report claims by Trump and his supporters under the First Amendment, which were often made in the filings courts that challenged the elections.

When Trump’s election allegations didn’t materialize, Newsmax said it updated viewers. On December 21, 2020, it invited Smartmatic representatives to appear on a show to address any perceived inaccuracies, but the voting machine manufacturer did not respond. It described Smartmatic’s coverage as “minor”.

Smartmatic has not publicly estimated the damages at stake, but Newsmax told the court on Sept. 16 that the voting machine company is seeking between $400 million and $600 million. Newsmax had $67 million in assets at the end of 2022, according to a securities filing.

Delaware Superior Court Judge Eric Davis ruled this month that Smartmatic could not prove that Newsmax’s primary motive was to harm Smartmatic. Therefore, the company cannot seek punitive damages.

False claims about the 2020 election have resulted in several defamation settlements or verdicts.

Fox News and Fox Corp. last year settled a defamation case by Dominion Voting Systems for $787.5 million, and a jury last year ruled that former Trump lawyer Rudy Giuliani had to pay $148 million of dollars to two former election workers in Georgia whom he accused of election fraud. Giuliani appealed.

Other defamation cases from the 2020 election are ongoing.

Smartmatic is suing Fox in New York for $2.7 billion, and Dominion is seeking up to $1.6 billion in damages against Newsmax, also in Delaware court.

TOPICS
demand