Newsmax and Smartmatic Reach Settlement in Defamation Case
The pro-Trump cable channel Newsmax and voting technology firm Smartmatic have reached a settlement in a significant defamation lawsuit, resolving issues related to the broadcasting of false claims regarding the 2020 election. The parties announced the agreement on Thursday, just hours after jury selection began in a Delaware courtroom.
Details of the Settlement Remain Unknown
While the exact terms of the settlement have not been disclosed, Newsmax expressed satisfaction, stating that it has successfully resolved the litigation with a confidential agreement. Meanwhile, a representative from Smartmatic indicated their contentment with the outcome, asserting that accountability for misinformation is crucial.
Potential Implications for Newsmax
Experts indicated that a judgement against Newsmax in the ongoing lawsuit could have threatened the channel’s financial stability, as it could have been liable for tens of millions in damages. This settlement has averted what could have been a pivotal trial evaluating whether Newsmax had indeed defamed Smartmatic by airing spurious allegations claiming that the company’s machines had manipulated election results against Donald Trump.
Newsmax has consistently denied any wrongdoing and has maintained that their coverage is protected under the First Amendment.
Background on the Lawsuit and Broader Context
This trial was closely monitored as it would have been the first to examine claims of defamation against right-wing news outlets following the 2020 election results. Smartmatic has expressed that false claims disseminated by Newsmax, along with other pro-Trump media outlets, damaged its reputation and incurred financial losses. Originally, Smartmatic’s damages claim was estimated around $1.3 billion, but judgments by the court and changes in legal strategy saw it decrease to around $370 million.
Legal Maneuvering and Settlement Dynamics
Despite earlier setbacks in negotiations, settlement discussions accelerated as the trial date approached, resulting in both parties finding common ground just minutes before proceedings were to officially begin. It’s reported that during the crucial moments of jury selection, lawyers from both sides were not present in the courtroom, indicating intense negotiations were ongoing.
Other Defamation Cases and Legal Trends
This settlement is part of a broader trend of defamation cases stemming from the tumultuous 2020 election. Notably, Fox News settled a comparable lawsuit with Dominion Voting Systems for a historic $787 million. Newsmax is still facing ongoing litigation related to similar allegations from Dominion, where they maintain their innocence.
Looking Ahead to Future Lawsuits
Despite the conclusion of this case, significant legal challenges lie ahead, particularly for Fox News and its parent company as they prepare for a trial with Smartmatic scheduled for next year. Smartmatic remains adamant about pursuing accountability for what they describe as harmful misinformation by media outlets.
