Newsmax Media has agreed to pay $40 million to settle a defamation lawsuit filed by Smartmatic, a voting technology company, over false claims regarding the 2020 U.S. presidential election. The settlement, reached last year and disclosed in a recent investor document, resolves allegations that Newsmax falsely reported Smartmatic’s involvement in rigging the election in favor of Joe Biden.
Smartmatic’s lawsuit, filed in 2021, accused Newsmax of broadcasting damaging misinformation, including claims that the company switched votes, that its machines were hacked, and that it was funded by corrupt dictators. These unfounded allegations were amplified on social media, leading to a significant increase in Newsmax’s viewership post-election.
In response to the lawsuit, Newsmax asserted its First Amendment right to report on claims made by Trump and his supporters, stating that these allegations were often part of court filings challenging the election. The company clarified its reporting about Smartmatic in December 2020 and invited Smartmatic representatives to present their perspective on air, an invitation that was declined.
This settlement is part of a broader legal landscape where voting technology companies like Smartmatic and Dominion Voting Systems are actively pursuing defamation lawsuits to combat disinformation and protect their reputations. Smartmatic has also sued Fox News for $2.7 billion over similar claims related to the 2020 election coverage.
The Newsmax settlement underscores the serious consequences media organizations face when disseminating unverified information, particularly concerning the integrity of the electoral process. As the 2024 election approaches, these legal actions highlight the critical importance of accurate and responsible journalism in maintaining public trust in democratic institutions.
