By Tom Hals
WILMINGTON, Delaware (Reuters) -Newsmax Media reached a confidential settlement of a lawsuit by Smartmatic, the voting machine maker that had alleged it was defamed by the news outlet’s false claims that its machines were rigged to help steal the 2020 U.S. presidential election from Donald Trump, the companies said on Thursday.
The agreement came on the eve of a four-week jury trial, with opening arguments scheduled to begin in Wilmington, Delaware on Sept. 30.
“Newsmax is pleased to announce it has resolved the litigation brought by Smartmatic through a confidential settlement,” the company said in a statement.
Smartmatic also said in a statement it was pleased to have reached a deal. “Lying to the American people has consequences. Smartmatic will not stop until the perpetrators are held accountable.”
Smartmatic sued Newsmax in 2021, alleging it broadcast damaging misinformation falsely claiming the company switched votes in the 2020 election, that its machines were hacked and that it was funded by corrupt dictators.
Smartmatic alleged that Newsmax profited from its false reporting. Trump amplified Newsmax’s reporting on social media and the broadcaster’s audience jumped 10-fold after the election, vaulting it over cable news rivals such as CNBC and Fox Business, according to Nielsen Ratings.
Smartmatic’s machines were only used in Los Angeles County in the 2020 election and it has said there has never been a security breach with its equipment, which has recorded billions of votes, largely in non-U.S. elections.
Both Newsmax and Smartmatic’s U.S. affiliate are based in Boca Raton, Florida.
Newmax said it had a First Amendment right to report claims by Trump and his supporters, which were often made in court filings challenging the election.
The company also clarified its reporting about Smartmatic in December 2020 and invited Smartmatic representatives to come on air to explain their side of the story to Newsmax viewers. Smartmatic did not accept that invitation.
Newsmax has described its coverage of Smartmatic as “minor.”
Smartmatic has not publicly estimated the damages at stake, but Newsmax told the court on Sept. 16 the voting machine company was seeking $400 million to $600 million and described the case as “bet your company” litigation.
Newsmax had $67 million in assets at the end of 2022, according to a securities filing, and said in a June investor presentation it hoped to file for a public offering of its stock this year or early 2025.
“We are now looking forward to our day in court against Fox Corp and Fox News for their disinformation campaign,” Smartmatic said.
The company is suing Fox in New York for $2.7 billion.
False claims about the 2020 election have led to several defamation settlements or verdicts.
Fox agreed to settle defamation claims by Dominion Voting Systems last year for $787.5 million, which was the biggest defamation settlement by a U.S. media company, according to legal experts. Dominion is also seeking up to $1.6 billion in damages against Newsmax, which is in litigation in the Delaware court.
A jury decided last year that former Trump attorney Rudy Giuliani had to pay more than $148 million in damages to two former Georgia election workers he defamed through false accusations that they helped rig the 2020 election against Trump. Giuliani filed an appeal.
(Reporting by Tom Hals in Wilmington, Delaware; Editing by Noeleen Walder, Bill Berkrot and David Gregorio)
