Newsmax Pays $40 Million to Settle 2020 Election Defamation Lawsuit.
Newsmax has agreed to pay $40 million to Smartmatic as part of a defamation lawsuit settlement over false claims regarding the 2020 U.S. presidential election, according to a new regulatory filing.
The settlement, reached in September 2023, included both a cash payment and an option for Smartmatic to purchase Newsmax stock. So far, $20 million has been paid, with the remaining amount due before July 2024.
Why Newsmax Settled the Lawsuit
The lawsuit, filed in 2021, accused Newsmax of spreading false claims that Smartmatic’s voting machines manipulated election results in favor of Joe Biden. These allegations were part of a broader wave of election misinformation that fueled legal battles against several conservative media outlets.
Newsmax acknowledged in its filing that the settlement would help eliminate future legal expenses, which could have included costly appeals and additional court proceedings.
“Management believes the settlement with Smartmatic will, subject to the payment of all consideration in a timely manner, eliminate future legal expenses the Company would have expected to bear related to this suit.”
Newsmax Publicly Admits Election Claims Were False
After the settlement, Newsmax publicly acknowledged that the court had ruled the claims about Smartmatic rigging the 2020 election were “factually false.”
This statement reinforces that there was no credible evidence supporting allegations of widespread voter fraud involving Smartmatic’s technology.
Smartmatic’s Next Legal Battle: Fox News
With the Newsmax case now settled, Smartmatic is shifting its focus to a similar lawsuit against Fox News.
“We look forward to presenting our evidence to a jury and finally having the opportunity to hold Fox accountable for its harmful actions,” said J. Erik Connolly, an external lawyer for Smartmatic.
Fox News maintains that it was reporting on newsworthy events related to the 2020 election and denies wrongdoing.
Fox News’ $787.5 Million Settlement with Dominion
Smartmatic’s lawsuit against Fox follows a historic $787.5 million defamation settlement in 2023 between Fox Corp. and Dominion Voting Systems over similar election fraud claims.
This case and the Newsmax settlement highlight the high legal and financial consequences for media outlets that spread false election-related allegations.
Final Thoughts
The $40 million Newsmax settlement is part of a growing trend of legal accountability for misinformation related to the 2020 election. With Smartmatic’s lawsuit against Fox News still ongoing, the media landscape could face even more legal and financial repercussions in the near future.
