On March 13, 2023, it was reported that Newsmax Media, a prominent cable outlet, has agreed to a substantial settlement of $40 million to resolve allegations of defamation brought by Smartmatic. The settlement stems from claims that Newsmax disseminated false information, suggesting that Smartmatic played a role in rigging the 2020 U.S. presidential election in favor of Joe Biden over Donald Trump. This information was disclosed in a regulatory filing by Newsmax dated March 7, 2023.
Smartmatic, a voting technology company, initiated a lawsuit against Newsmax in 2021. The lawsuit accused the media outlet of broadcasting damaging misinformation that falsely claimed Smartmatic’s voting machines were used to switch votes, were hacked, and received funding from corrupt dictators. According to Smartmatic, Newsmax profited from these misleading reports, which significantly affected the company’s reputation.
Trump's amplification of Newsmax's claims on social media led to a remarkable increase in the broadcaster's viewership, reportedly increasing its audience tenfold after the election. This surge propelled Newsmax ahead of its cable news competitors, including CNBC and Fox Business, as indicated by Nielsen Ratings.
In a statement following the settlement, a representative from Smartmatic expressed that while the company could not disclose specific details regarding the settlement, it is eager to proceed with its lawsuit against Fox News. This legal action is based on similar allegations concerning Fox's coverage of the election. Smartmatic has filed this suit in New York, seeking an astounding $2.7 billion in damages.
Despite the settlement with Newsmax, the voting technology company had not publicly estimated the damages sought in its case against the cable outlet. However, Newsmax has claimed in court that Smartmatic was pursuing damages ranging between $400 million and $600 million.
In response to the allegations, Newsmax asserted its First Amendment right to report on claims made by Trump and his supporters, many of which were presented in court filings challenging the election results. The media outlet made efforts to clarify its reporting on Smartmatic in December 2020, even inviting representatives from Smartmatic to appear on air and present their side of the story to Newsmax viewers. However, Smartmatic declined this invitation.
As this situation continues to develop, the implications of these legal battles highlight the ongoing challenges and responsibilities that media outlets face in reporting on sensitive political matters, particularly in the context of a contentious election.
For more updates on this evolving story, stay tuned.
