By Tom Hals
WILMINGTON, Delaware (Reuters) -Newsmax Media has reached a confidential settlement in 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 influence the 2020 U.S. presidential election. from Donald to help Trump steal, the companies said Thursday.
The agreement came on the eve of a four-week jury trial, with opening arguments scheduled to begin on September 30 in Wilmington, Delaware.
“Newsmax is pleased to announce that it has resolved the lawsuit brought by Smartmatic through a confidential settlement,” the company said in a statement.
Smartmatic also said in a statement that it was pleased that a deal had been reached. “Lying to the American people has consequences. Smartmatic will not stop until the perpetrators are held accountable.”
Smartmatic sued Newsmax in 2021, alleging it had broadcast harmful disinformation, falsely claiming the company had switched votes in the 2020 election, that its machines had been hacked and that it was funded by corrupt dictators.
Smartmatic claimed that Newsmax profited from its false reporting. Trump boosted Newsmax’s social media coverage and the broadcaster’s audience increased tenfold after the election, surpassing cable news rivals like CNBC and Fox Business, according to Nielsen Ratings.
Smartmatic’s machines were only used in Los Angeles County in the 2020 election and the company says there has never been a security breach with its equipment, which has recorded billions of votes, largely in non-U.S. elections.
Both Newsmax and Smartmatic’s U.S. affiliate are based in Boca Raton, Florida.
Newmax said it had a First Amendment right to report claims by Trump and his supporters, which were often made in lawsuits challenging the election.
The company also clarified its reporting on Smartmatic in December 2020 and invited Smartmatic representatives to explain their side of the story to Newsmax viewers. Smartmatic did not accept that invitation.
Newsmax has described coverage of Smartmatic as “minor.”
Smartmatic has not publicly estimated the damages at stake, but Newsmax told the court on September 16 that the voting machine company was seeking $400 million to $600 million and described the case as a “bet your company” lawsuit.
Newsmax had $67 million in assets at the end of 2022, according to a securities filing, and said in an investor presentation in June that it hoped to file a public offering of its shares this year or early 2025.
“We now look forward to our day in court against Fox Corp and Fox News for their disinformation campaign,” Smartmatic said.
The company is suing Fox in New York for $2.7 billion.
False claims about the 2020 election have led to several defamation settlements or judgments.
Fox agreed last year to settle defamation claims by Dominion Voting Systems for $787.5 million, which legal experts said was the largest defamation settlement by a U.S. media company. Dominion is also seeking damages of up to $1.6 billion against Newsmax, which is pending in court in Delaware.
A jury decided last year that former Trump lawyer Rudy Giuliani had to pay more than $148 million in damages to two former election workers in Georgia whom he had defamed with false allegations that they helped rig the 2020 election against Trump. Giuliani has filed an appeal.
(Reporting by Tom Hals in Wilmington, Delaware; Editing by Noeleen Walder, Bill Berkrot and David Gregorio)
