The pro-Trump cable outlet Newsmax and voting technology company Smartmatic settled a major defamation lawsuit regarding false claims made during the 2020 election. The terms of the settlement were not immediately disclosed, but the agreement came just as jury selection was underway in a Delaware courtroom. Newsmax announced the resolution of the litigation, while Smartmatic’s lawyer expressed satisfaction in securing the completion of the case.
The closely watched trial could have resulted in Newsmax facing financial peril if found guilty of defamation. Settlement talks intensified on the day jury selection began as both parties worked out a deal to avoid the trial. Smartmatic had initially claimed damages of billions of dollars but reduced it to approximately $370 million as the trial approached. The judge’s ruling limited the amount Smartmatic could seek in compensation for provable losses, leading to the drop in their damage claim.
Settlements are a common outcome in civil lawsuits, including defamation cases, as it can be more cost-effective than going to trial. This is part of a trend of 2020 election defamation cases being settled outside of court, such as Fox News settling with Dominion Voting Systems for $787 million and One America News settling with Smartmatic. Newsmax still faces a defamation lawsuit from Dominion, while the biggest lawsuit looming is Smartmatic’s case against Fox News and Fox Corporation scheduled for trial next year.
Newsmax denied wrongdoing in the defamation lawsuit and believed their coverage was protected by the First Amendment. However, as settlement talks heated up, the possibility of a financial loss in court motivated them to reach an agreement. Smartmatic alleged that the false claims made by Newsmax and other right-wing media outlets caused significant damage to their reputation and resulted in substantial financial losses, leading to the defamation lawsuit.
The settlement between Newsmax and Smartmatic was reached just before the trial began, avoiding a potentially costly outcome for the cable outlet. Smartmatic’s decision to reduce their damage claim and focus on provable losses likely played a role in the settlement talks. As Newsmax faces other defamation lawsuits related to the 2020 election, including one from Dominion, the resolution of the Smartmatic case may impact future legal proceedings involving the cable channel and other media outlets. Fox News, in particular, faces a major trial next year in Smartmatic’s defamation case, which is expected to be closely watched in the media industry.
