Newsmax settles Smartmatic defamation lawsuit over false 2020 election claims

By Tom Hals

WILMINGTON, Delaware (Reuters) – Newsmax Media has reached a confidential settlement of a lawsuit from Smartmatic, the voting machine maker that claimed it was defamed by the news outlet’s false claims that its machines were rigged to help to steal the 2020 US presidential election from Donald Donald. Trump, the companies said Thursday.

The settlement came on the eve of a four-week jury trial, with opening arguments scheduled to begin in Wilmington, Delaware, on September 30.

“Newsmax is pleased to announce that it has settled the litigation brought by Smartmatic through a confidential settlement,” the company said in a statement.

Smartmatic also said in a statement that it was pleased to reach a settlement. “Lying to the American people has consequences. Smartmatic will not stop until the culprits are brought to justice.”

Smartmatic sued Newsmax in 2021, alleging that it spread harmful misinformation, falsely claiming that the company changed votes in the 2020 election, that its machines were hacked, and that it was funded by corrupt dictators.

Smartmatic alleged that Newsmax profited from its false reporting. Trump boosted Newsmax’s social media reporting, and the broadcaster’s audience grew 10-fold after the election, tossing it ahead of cable news rivals CNBC and Fox Business, according to Nielsen Ratings.

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

Both Newsmax and US affiliate Smartmatic are based in Boca Raton, Florida.

Newmax said he has a First Amendment right to report the claims by Trump and his supporters, which have often been made in court filings challenging the election.

The company also clarified its reports about Smartmatic in December 2020 and invited Smartmatic representatives to come on the show to explain their side of the story to Newsmax viewers. Smartmatic did not accept that invitation.

Newsmax described its Smartmatic 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 was seeking between $400 million and $600 million and described the case as “bet your company” litigation.

Newsmax had $67 million in assets at the end of 2022, according to a securities filing, and said in a June investor presentation that it hoped to file for an initial public offering of its shares this year or in early 2025 .

“We now look forward to our day in court against Fox Corp and Fox News for their misinformation campaign,” Smartmatic said.

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The company is suing Fox in New York for $2.7 billion.

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

Fox agreed to settle defamation claims by Dominion Voting Systems last year for $787.5 million, which was the largest defamation settlement by a US media company, according to legal experts. Dominion is also seeking up to $1.6 billion in damages against Newsmax, which is being litigated in Delaware court.

A jury ruled last year that Trump’s former lawyer, Rudy Giuliani, had to pay more than $148 million in damages to two former election workers in Georgia whom he defamed by falsely accusing them of helping to rig the U.S. election. 2020 against Trump. Giuliani appealed.

(Reporting by Tom Hals in Wilmington, Delaware; Editing by Noeleen Walder, Bill Berkrot and David Gregorio)