Newsmax Settles Defamation Lawsuit with Smartmatic Days Before Trial

The long-anticipated defamation lawsuit between voting machine company Smartmatic and conservative outlet Newsmax was settled just days before it was set to go to trial in Delaware. A Delaware court spokesman confirmed the settlement on Thursday but did not provide additional details. The trial was scheduled to begin on Monday in Wilmington, with the settlement terms remaining confidential.

Newsmax Resolves Litigation

“Newsmax is pleased to announce it has resolved the litigation brought by Smartmatic through a confidential settlement,” stated Bill Daddi, a spokesperson for the network. This announcement marks the latest development in the aftermath of the 2020 election, during which Newsmax aired numerous false claims about Smartmatic’s voting machines.

Although Smartmatic’s machines were only used in Los Angeles County during the 2020 election, Newsmax broadcast false claims from Donald Trump’s allies, alleging that the software was hacked and used nationwide to alter vote counts. These accusations were central to the legal dispute, leading Smartmatic to file lawsuits against Newsmax, Fox News, One America News Network (OANN), and others. The lawsuit with OANN was settled earlier this year, while Smartmatic’s case against Fox remains pending in New York.

Smartmatic’s Next Move

Following the settlement with Newsmax, Smartmatic expressed its relief and satisfaction with the resolution. “We are very pleased to have secured the completion of the case against Newsmax,” the company said in a statement. “We are now looking forward to our court day against Fox Corp and Fox News for their disinformation campaign. Lying to the American people has consequences, and Smartmatic will not stop until the perpetrators are held accountable.”

Fox Responds to Settlement

Still entangled in its legal battle with Smartmatic, Fox seized the opportunity to critique the company’s litigation strategy. In a statement, Fox said: “Smartmatic unsurprisingly chose to settle its case with Newsmax on the eve of trial after a series of significant setbacks devastated its case. Smartmatic’s claims against Fox are similarly impaired, unsupported by the facts, and intended to chill First Amendment freedoms. We look forward to defending this case when it goes to trial.” The anticipation of this trial adds to the tension and uncertainty surrounding the aftermath of the 2020 election.

Legal Experts Weigh In

First Amendment scholars have closely monitored this and other defamation lawsuits to assess whether libel law can effectively counteract misinformation. The Newsmax case drew comparisons to the earlier Dominion Voting Systems lawsuit against Fox, which ended in a $787.5 million settlement. Eric Davis, the judge overseeing both the Dominion and Newsmax trials, ruled that while Newsmax could use the “neutral report privilege” as a defense, Smartmatic could not seek punitive damages, limiting any financial payout.

However, some experts caution that while defamation law can label statements as false, it does not fully address the complexities of misinformation in the public sphere. “Defamation law can declare something a lie, but the question of whether a lie was told is only one of many questions that have to be asked and answered,” said RonNell Andersen Jones, a First Amendment scholar. This caution underscores the complexity and nuance of the legal issues at play.

Behind the Scenes at Newsmax

The settlement leaves unanswered questions about Newsmax’s internal handling of election fraud claims. While less information surfaced than in the Dominion-Fox case, some internal communications at Newsmax revealed skepticism about the election fraud narrative. In a letter dated November 12, 2020, Newsmax CEO Christopher Ruddy acknowledged that the network had no evidence of widespread voter fraud, stating, “We have no evidence of a voter fraud conspiracy, nor do we make such claims on Newsmax.”

An internal email from Newsmax host Bob Sellers also questioned the network’s coverage of election fraud claims, asking, “How long are we going to have to play along with election fraud?”

Conclusion

The settlement between Smartmatic and Newsmax may have spared the public from a detailed examination of the motivations behind Newsmax’s election coverage, but it leaves the broader question of how defamation law will continue to influence media accountability. As the defamation suit against Fox moves forward, the legal landscape for media companies reporting on sensitive political matters remains uncertain.