A Delaware judge has once again ruled that a conservative news outlet, Newsmax, disseminated false and defamatory claims regarding the involvement of a voting technology company, Dominion Voting Systems, in the 2020 presidential election. This ruling comes as Newsmax has recently celebrated a successful initial public offering (IPO).
In the aftermath of Joe Biden's victory over Donald Trump in November 2020, Trump's supporters and allies utilized right-wing media platforms to accuse Dominion Voting Systems of manipulating the electoral process to favor Biden. Judge Eric M. Davis stated in his opinion that Dominion has presented clear and convincing evidence showing that Newsmax aired segments containing inaccurate information. This misinformation would likely lead reasonable viewers to form a significantly negative opinion about Dominion, had they known the truth.
Judge Davis also pointed out that Newsmax issued a clarification in mid-December 2020, acknowledging the lack of evidence regarding voter fraud. This clarification indicated that Newsmax recognized the inaccuracies in several claims about Dominion and the election. As the lawsuit progresses to trial later this month, the jury will be tasked with determining whether to award damages and to what extent, as well as whether the broadcasts were made with actual malice—defined as knowledge of falsity or blatant disregard for the truth.
This ruling marks another legal setback for Newsmax from the same judge who oversaw a similar defamation lawsuit filed by Dominion against Fox News. That case concluded with a staggering $787.5 million settlement just before the trial was set to begin. In response to the ruling, Newsmax asserted that it has always covered the topic fairly and has not defamed Dominion. The statement emphasized that this lawsuit poses a significant threat to free speech and a free press, and Newsmax is committed to defending itself vigorously in court.
The ruling encapsulates a dramatic turn of events for Newsmax and its founder and CEO, Chris Ruddy. On March 21, Ruddy was present in the Delaware courtroom, closely listening to Dominion's attorneys as they sought to hold him and other executives personally accountable in this case. Just days later, Ruddy was reportedly in communication with President Trump, generating enthusiasm for Newsmax's upcoming public launch. Within a week, Ruddy's net worth reportedly surged to billionaire status as Newsmax shares skyrocketed over 1,000% following its IPO.
Ruddy and his team, alongside notable figures like Trump's former lawyer Rudy Giuliani, even rang the opening bell at the New York Stock Exchange, although the stock market experienced its sharpest decline since the COVID-19 pandemic on that same day. Following its IPO, Newsmax also announced a standby purchase agreement worth up to $1.2 billion with Yorkville Advisors. However, the company's financial trajectory may face further turbulence as Dominion's $1.6 billion lawsuit progresses toward trial.
Additionally, Newsmax is approaching a June 30 deadline for the second half of a $40 million settlement with Smartmatic USA, another voting systems firm that has also accused the cable news network of defamation in the wake of the 2020 election.
In the ongoing case against Newsmax, set to go to trial on April 28, Judge Davis has ruled that the broadcasts in question falsely implicated Dominion in affiliations with the late Venezuelan dictator Hugo Chavez and accused the company of committing crimes such as election rigging both in the United States and internationally. Dominion's attorneys have argued that the company is facing a slow demise, with dwindling new customers and expiring contracts. The jury will ultimately decide the extent of damages that Dominion has suffered as a result of Newsmax's broadcasts and whether those segments were aired with reckless disregard for the truth.
