Newsmax Settles Smartmatic Defamation Lawsuit for $40 Million
Newsmax Settles Smartmatic Defamation Lawsuit for $40 Million
In a significant legal resolution, Newsmax has agreed to pay $40 million to settle a defamation lawsuit filed by Smartmatic, a voting software company. This settlement, reached in September 2024, concludes a contentious legal battle that began in November 2021.
Key Points of the Settlement
- Total Settlement Amount: $40 million
- Initial Payment Made: $20 million
- Remaining Payment: $20 million in installments by June 30, 2025
- Stock Options: Smartmatic can purchase up to 5,000 shares of Newsmax
This lawsuit alleged that Newsmax disseminated false claims suggesting that Smartmatic was involved in altering the 2020 U.S. presidential election results. Similar to other media outlets, Newsmax faced significant scrutiny regarding its coverage during this politically charged period.
Legal Background
The lawsuit was filed in Delaware state court, where Smartmatic accused Newsmax of spreading misinformation that damaged its reputation and business prospects. The legal proceedings highlighted the broader implications of misinformation in media and the responsibility of news organizations to report accurately.
Details of the Allegations
Smartmatic alleged that:
- Newsmax reported unverified claims linking the company to election fraud.
- These claims contributed to the public's loss of trust in election systems.
According to Smartmatic's claims, the impacts of such misinformation ran deep, affecting their credibility and operations in the highly competitive tech landscape.
Conclusion
This settlement signifies a crucial moment in the ongoing discourse surrounding media accountability and misinformation. Although the dispute between Newsmax and Smartmatic has been resolved, Smartmatic continues to pursue a similar lawsuit against Fox News, illustrating the ongoing challenges in the media landscape regarding accurate reporting and accountability for defamation.
Further Reading
For more insights and details, you can read the following publications:
This pivotal settlement not only marks a significant financial commitment for Newsmax but also serves as a reminder of the importance of responsible journalism.