Settlement Reached Between Newsmax and Smartmatic over Defamation Claims
Newsmax Settles Lawsuit With Smartmatic Amid Allegations
Newsmax Media has recently reached a confidential settlement with Smartmatic, a company that manufactures voting machines. This settlement pertains to a defamation lawsuit initiated by Smartmatic, which accused Newsmax of disseminating false information that suggested its machines were rigged during the 2020 U.S. presidential election. Both parties announced their agreement, highlighting its significance as a resolution to ongoing litigation.
Details of the Settlement
The announcement of this settlement comes just before a four-week jury trial was set to commence. The news reflects a decision by Newsmax to resolve the litigation without proceeding to court. In an official statement, Newsmax expressed satisfaction in concluding the litigation, while Smartmatic emphasized the importance of accountability regarding misleading claims made against them.
Background of the Allegations
In 2021, Smartmatic filed a lawsuit alleging that Newsmax's broadcasts portrayed damaging misinformation about its voting machines. Smartmatic claimed that Newsmax's reports misrepresented their technology, raising concerns that it switched votes during the election and was compromised. Furthermore, the lawsuit argued that Newsmax profited from this misinformation, particularly as the former President amplified these claims through social media, boosting Newsmax's audience significantly.
The Impact of Media Coverage
Data from Nielsen Ratings illustrated the dramatic increase in Newsmax's viewership following the 2020 election, as it gained ground over traditional cable news competitors. Smartmatic, whose voting machines were exclusively used in Los Angeles County during the election, has maintained that there has never been a reported security breach with its technology.
Legal Context and Broader Implications
Smartmatic has not provided a definitive estimate relating to the damages incurred due to the alleged defamation; however, there were indications that the company sought between $400 million and $600 million in damages. As reported, Newsmax described the case as critical, with significant financial implications for its future.
Future Directions for Newsmax and Smartmatic
At the end of 2022, Newsmax disclosed its asset valuation at approximately $67 million and hinted at plans to pursue a public offering of its stock. As Smartmatic moves ahead, it is also preparing to initiate a legal case against Fox Corporation and Fox News, asserting that they engaged in a disinformation campaign as well.
Recent Developments in Voting Misinformation Cases
This settlement follows a series of defamation verdicts and settlements tied to the controversial claims surrounding the 2020 election. Notably, Fox Corporation previously settled claims with Dominion Voting Systems for a substantial amount, marking a historic moment in media accountability for false representations in reporting.
Additionally, legal actions have surfaced regarding allegations against former Trump attorney Rudy Giuliani, who was ordered to pay damages for similarly defamatory statements regarding former election workers.
Frequently Asked Questions
What led to the settlement between Newsmax and Smartmatic?
The settlement arose from a defamation lawsuit filed by Smartmatic, which claimed Newsmax reported false information about its voting machines in relation to the 2020 presidential election allegations.
Were damages sought by Smartmatic in the lawsuit?
Yes, Smartmatic sought damages speculated to be between $400 million and $600 million due to the claims made against them by Newsmax.
What was the significance of this settlement?
This settlement was important as it prevented a trial and highlighted issues of media responsibility and the consequences of spreading misinformation.
How did Newsmax's reporting affect its viewership?
Newsmax's reporting on the 2020 election allegations significantly increased its audience, reportedly boosting viewership tenfold.
What are the future legal challenges for Smartmatic?
Smartmatic is planning to bring a lawsuit against Fox Corporation and Fox News for alleged defamation and disinformation campaigns related to the 2020 election as well.
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