Newsmax and voting technology company Smartmatic settled a defamation lawsuit in a last-minute agreement, avoiding a trial over false claims made during the 2020 election. The terms of the settlement were not immediately disclosed, and the parties announced the agreement just before the trial was set to begin. Newsmax stated they were pleased to resolve the litigation brought by Smartmatic.
Smartmatic’s lawyer, Erik Connolly, expressed satisfaction with the completion of the Newsmax case, stating that lying to the American people has consequences, and Smartmatic will continue to seek accountability for the perpetrators. The trial would have been one of the first high-profile lawsuits against right-wing media companies related to the 2020 election to reach a jury, determining whether Newsmax defamed Smartmatic by airing false claims about election rigging.
Newsmax had denied any wrongdoing and claimed their coverage was protected by the First Amendment. Settlement talks intensified on the day of jury selection, with both sides working out a deal privately outside the courtroom. A loss at trial could have had severe financial implications for Newsmax, potentially requiring payment of tens of millions of dollars to Smartmatic.
Smartmatic had initially sought damages of approximately $1.27 billion but reduced their claim to around $370 million as the trial approached. The drop in damages followed a ruling by the Delaware Superior Court that limited their compensation to provable losses, eliminating the possibility of punitive damages. Smartmatic also chose to forgo seeking damages beyond 2023 to avoid potentially damaging testimony related to an unrelated bribery scheme.
Civil lawsuits often result in settlements just before trial begins to avoid the expenses associated with legal proceedings. The settlement between Newsmax and Smartmatic is the latest in a series of defamation cases related to the 2020 election that have been resolved out of court. Newsmax still faces another defamation lawsuit from Dominion that is ongoing. The biggest lawsuit pending is Smartmatic’s case against Fox News and Fox Corporation, scheduled for trial next year.
Newsmax and other media outlets faced legal action for spreading false allegations about the 2020 election. Fox News settled with Dominion Voting Systems for $787 million, and One America News settled with Smartmatic earlier this year. The legal actions highlight the consequences of spreading misinformation and the efforts to hold media companies accountable for their role in disseminating false claims during the election.
