Smartmatic and Newsmax Reach Settlement Over Defamation Lawsuit
A recent settlement has been reached between Smartmatic USA and Newsmax regarding a defamation lawsuit focused on false voter fraud allegations from the 2020 presidential election. This settlement was finalized during the jury selection process, shortly before the trial was set to begin in Delaware.
Details of the settlement have not been disclosed by either party. In a statement, Smartmatic expressed satisfaction with the resolution, indicating that the company will now concentrate on its pending lawsuits against Fox News and Fox Corp.
"Lying to the American people has consequences," stated Smartmatic. "Smartmatic will not stop until the perpetrators are held accountable."
Continuing Legal Battles from the 2020 Election
This case forms part of a broader wave of litigation linked to claims of voter fraud in the 2020 election. In 2023, Dominion Voting Systems settled a defamation lawsuit against Fox News for $787.5 million. Dominion is also pursuing a lawsuit against Newsmax in Delaware Superior Court, while Smartmatic continues to pursue a major legal battle against Fox News in New York.
Additionally, Smartmatic settled a similar defamation case against One America News Network earlier this year, though the settlement details remain private.
Oversight of Defamation Cases
Judge Eric M. Davis, who previously handled the high-profile Dominion case against Fox News, also presided over the Smartmatic lawsuit against Newsmax. In the Dominion case, Davis ruled that Fox News had knowingly and repeatedly defamed Dominion, leaving the jury to decide on damages right before a settlement was reached.
For the Smartmatic lawsuit, Davis ruled out punitive damages, noting that there was no evidence of malicious intent by Newsmax towards Smartmatic. Instead, any compensation would be limited to direct losses attributable to the defamation.
Focus on Misleading Statements
The core issue in Smartmatic’s lawsuit against Newsmax revolved around multiple television segments aired in late 2020, where the company was repeatedly linked to unsubstantiated vote-switching conspiracy theories. Notably, Smartmatic’s operations during the 2020 election were limited to Los Angeles County, where no fraud was alleged, rendering the conspiracy theories baseless.
Newsmax hosts and guests propagated these theories, including airing segments from Fox News that echoed statements by Trump legal adviser Sidney Powell, who was known for her election fraud claims. Powell has since faced legal repercussions, including sanctions and a guilty plea for election interference in Georgia.
By late 2020, Newsmax began broadcasting disclaimers and issued retractions, distancing itself from the unfounded allegations about Smartmatic and Dominion.
Legal Filings and Defense Strategy
In legal documents, Newsmax denied any defamatory actions against Smartmatic. Nonetheless, details emerging in pre-trial hearings revealed potential vulnerabilities in Newsmax’s defense strategy. For instance, the network’s legal team suggested a possible argument that some producers were unaware Smartmatic and Dominion were separate entities, and that the on-air personalities were not strictly bound by journalistic standards designed for the network’s written content.
Smartmatic’s Valuation and Legal Issues
Throughout the legal proceedings, there were disputes over Smartmatic’s fluctuating valuation, with significant discrepancies acknowledged by involved lawyers. Additionally, Smartmatic faced its own challenges, including federal indictments against several of its officials related to a bribery scheme in the Philippines. Judge Davis permitted some of this evidence to be presented in the Newsmax trial, which may have influenced the decision to settle.
Impact on Future Trials
These developments likely reduced the probability that a trial would yield a better outcome for Smartmatic than a settlement. They could also influence the upcoming trial against Fox in New York.
A spokesperson for Fox News Media commented on the settlement, stating, "Smartmatic unsurprisingly chose to settle its case with Newsmax on the eve of trial after a series of major setbacks devastated its case. Smartmatic’s claims against Fox are similarly impaired, unsupported by the facts, and intended to chill First Amendment freedoms."
Fox News Media expressed readiness to defend against Smartmatic’s claims in court.