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Newsmax and Smartmatic Settle Major Defamation Lawsuit Over 2020 Election Claims

The pro-Trump cable channel Newsmax has reached a significant out-of-court settlement with Smartmatic, a voting technology firm, regarding a defamation lawsuit stemming from allegations related to the 2020 presidential election. This agreement was reached just before a pivotal trial was set to commence, thus avoiding what could have been a lengthy and high-stakes legal battle.

Details of the Settlement

While the exact terms of the settlement have not been disclosed to the public, it was announced shortly after jury selection began in a Wilmington, Delaware courtroom ahead of the opening statements scheduled for Monday. An official announcement regarding the settlement was made in the afternoon by representatives from both parties and a court official, indicating that both sides had come to a mutually agreeable resolution.

In a public statement, Newsmax expressed satisfaction with the outcome, saying, “Newsmax is pleased to announce it has resolved the litigation brought by Smartmatic through a confidential settlement.” This reflects a desire to move forward without the uncertainties that a trial could entail.

Smartmatic’s Perspective

Smartmatic’s attorney, Erik Connolly, indicated that the company was relieved and satisfied with the resolution of the case, stating that they were “very pleased to have secured the completion” of the litigation against Newsmax. Connolly emphasized the importance of accountability in the media, asserting, "Lying to the American people has consequences.” He further reiterated Smartmatic’s commitment to pursuing responsibility for misleading actions in the media landscape.

The Trial and Its Implications

The trial was poised to be a noteworthy event, representing one of the first lawsuits against right-wing media outlets regarding claims that their coverage led to reputational damage for companies like Smartmatic. Specifically, Smartmatic accused Newsmax of broadcasting false claims that implied the company’s voting machines had been manipulated to favor Donald Trump in the election.

Newsmax maintained that it did not engage in any wrongdoing and sought to defend its reporting as protected under the First Amendment.

The Stakes Involved

The significance of a potential trial weighed heavily on Newsmax, as a substantial loss could have resulted in a damage award potentially amounting to tens of millions of dollars, thereby jeopardizing the financial stability of the network. Howard Cooper, a representative for Newsmax, characterized the case as a “bet-your-company case,” underscoring the gravity of the situation for the network and its future.

In the lead-up to the trial, developments indicated a diminishing position for Smartmatic, which might have encouraged discussions for an out-of-court agreement. Initially, Smartmatic claimed that the false narratives propagated by Newsmax and other media outlets had devastated their reputation and resulted in alleged losses of billions. However, as the courtroom proceedings neared, Smartmatic’s legal team adjusted their expected damages down to approximately $370 million, a significant reduction of about $1 billion.

legal Context and Settlement Trends

legal experts have noted that settlements are a frequent outcome in civil defamation lawsuits, especially when trials are imminent. Eric Robinson, a media law professor at the University of South Carolina, stated, “Settlements are often pragmatic, allowing both parties to avoid trial costs and further legal entanglements.”

This case adds to a series of settlements related to defamation claims following the 2020 election – notable instances include Fox News settling a claim with Dominion Voting Systems for $787 million and One America News also settling with Smartmatic earlier this year.

Remaining legal Challenges

Despite this settlement, Newsmax is not in the clear. The network continues to face a different defamation lawsuit linked to similar allegations from Dominion Voting Systems, which it also denies. Moreover, the looming case from Smartmatic against Fox News remains a major legal confrontation expected to unfold with a trial set for next year. Connolly expressed enthusiasm for that upcoming battle, stating, “We are now looking forward to our court day against Fox and Fox News for their disinformation campaign.”

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