By Tom Hals
WILMINGTON, Delaware (Reuters) – Newsmax Media said on Thursday it had reached a confidential settlement of allegations that the conservative outlet damaged Smartmatic by broadcasting false claims that the voting machine company helped steal the 2020 U.S. presidential election from Donald Trump.
The agreement came on the eve of a four-week jury trial, with opening arguments scheduled to begin in Wilmington, Delaware on Sept. 30.
Smartmatic sued Newsmax in 2021, alleging it broadcast damaging misinformation falsely claiming the company switched votes in the 2020 election, that its machines were hacked and that it was funded by corrupt dictators.
Smartmatic alleged that Newsmax benefited from the false reporting. Trump amplified Newsmax’s reporting on social media and the broadcaster’s audience jumped 10-fold after the election, vaulting it over cable news rivals such as CNBC and Fox Business, according to Nielsen Ratings.
Smartmatic’s machines were only used in Los Angeles County in the 2020 election and it has said there has never been a security breach with its equipment, which has recorded billions of votes, largely in non-U.S. elections.
The news outlet, which like Smartmatic’s U.S. affiliate is based in Boca Raton, Florida, has said it had a First Amendment right to report claims by Trump and his supporters, which were often made in court filings challenging the election.
The company also clarified its reporting about Smartmatic in December 2020 and invited Smartmatic representatives to come on air to explain their side of the story to Newsmax viewers. Smartmatic did not accept that invitation.
Newsmax, in a statement just before the trial, said it was “ludicrous” that Smartmatic could claim it was defamed given the company’s president was indicted for bribery in August. Delaware Superior Court Judge Eric Davis had decided that Newsmax would not be permitted to tell the jury about the indictment.
The voting machine company had sought more than $1 billion in damages. Newsmax described the lawsuit as a “bet your company” case.
False claims about the 2020 election have led to several defamation settlements or verdicts.
Fox News and Fox Corp agreed to settle defamation claims by Dominion Voting Systems last year for $787.5 million, which was the biggest defamation settlement by a U.S. media company, according to legal experts.
Conservative broadcaster One American News Network reached a settlement with Smartmatic, Newsmax with an employee of Dominion Voting Systems, and Fox with a Venezuelan businessman. Terms of those agreements were confidential.
A jury decided last year that former Trump attorney Rudy Giuliani had to pay more than $148 million in damages to two former Georgia election workers he defamed through false accusations that they helped rig the 2020 election against Trump.
Meanwhile, Smartmatic is suing Fox in New York for $2.7 billion and Dominion is seeking up to $1.6 billion in damages against Newsmax, also in the Delaware court.
Newsmax said in a June investor presentation it expected to conduct an initial public offering of its stock this year or early next year and expected 2024 revenue to be $181 million.
(Reporting by Tom Hals in Wilmington, Delaware; Editing by Noeleen Walder and Bill Berkrot)
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