Newsmax Settles Smartmatic Lawsuit Over 2020 Election Claims

Newsmax Media has reached a confidential settlement with Smartmatic, resolving allegations of defamation related to the 2020 U.S. presidential election. The agreement, announced two days ago, came just before the scheduled start of a four-week jury trial in Wilmington, Delaware.

The lawsuit, filed by Smartmatic about three years ago, accused Newsmax of broadcasting false claims that the voting technology company had manipulated the 2020 election results. These allegations were part of a broader narrative questioning the integrity of the election process, which has since been thoroughly debunked by election officials and cybersecurity experts.

This settlement is part of a larger trend of legal actions against media outlets for spreading election misinformation. Nearly 1.5 years ago, Fox News agreed to pay $787.5 million to settle similar claims by Dominion Voting Systems, marking the largest defamation settlement by a U.S. media company to date.

The case highlights the complex interplay between media, technology, and democracy in the digital age. While the First Amendment protects freedom of speech and press, it does not shield media outlets from liability for knowingly spreading false information. This balance has become increasingly crucial as social media platforms and alternative news sources have gained prominence in shaping public opinion.

Smartmatic's role in the 2020 election was limited to Los Angeles County, the most populous county in the United States. The company has consistently maintained that there have been no security breaches with its equipment, which has recorded billions of votes, primarily in non-U.S. elections.

The impact of election misinformation on democratic processes has been a subject of extensive study by political scientists. The rise of fact-checking organizations and increased emphasis on media literacy underscore the growing concern about the spread of "fake news" and its potential consequences.

"It is ludicrous that Smartmatic could claim it was defamed given the company's president was indicted for bribery in August."

This statement, made by Newsmax just before the trial, was not permitted to be presented to the jury by Delaware Superior Court Judge Eric Davis. The indictment, which occurred about a month ago, adds another layer of complexity to the ongoing debates about election integrity and media responsibility.

The financial implications of these legal battles are significant. Newsmax had described the lawsuit as a "bet your company" case, with Smartmatic seeking more than $1 billion in damages. This settlement comes as Newsmax is reportedly planning an Initial Public Offering (IPO) either this year or early next year, with expected 2024 revenue of $181 million.

As the dust settles on this particular case, the broader conversation about the role of media in elections, the impact of misinformation, and the balance between free speech and accountability continues. With ongoing lawsuits, including Smartmatic's $2.7 billion suit against Fox in New York and Dominion's $1.6 billion case against Newsmax, the legal and ethical landscape for media companies reporting on elections remains complex and evolving.