Newsmax paid $40 million to settle election systems company Smartmatic’s defamation lawsuit last year, according a recent regulatory filing made by the media outlet. When the settlement was announced last year, just days before a trial was to start, the terms were not disclosed. But Newsmax revealed the figure as part of its plans for […]Newsmax paid $40 million to settle election systems company Smartmatic’s defamation lawsuit last year, according a recent regulatory filing made by the media outlet. When the settlement was announced last year, just days before a trial was to start, the terms were not disclosed. But Newsmax revealed the figure as part of its plans for
Newsmax paid $40 million to settle election systems company Smartmatic‘s defamation lawsuit last year, according a recent regulatory filing made by the media outlet.
When the settlement was announced last year, just days before a trial was to start, the terms were not disclosed. But Newsmax revealed the figure as part of its plans for an initial public offering.
“Newsmax Media reached a settlement agreement with Smartmatic on September 26, 2024, pursuant to which all claims will be released by Smartmatic for consideration, including a cash amount of $40 million payable over time and the issuance of a five year cash exercise warrant to purchase 2,000 shares of Series B preferred stock at an exercise price of $5,000 per share,” Newsmax said in the filing.
“As of the date hereof, the Company has made payments under the settlement agreement totaling $20 million. Payment of the remaining balance will be made in installments of $10 million on or prior to each of March 31, 2025 and June 30, 2025. The payments will be made from the Company’s existing cash on hand, and no proceeds of this Offering will be used to make the remaining payments.”
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“Management believes the settlement with Smartmatic will, subject to the payment of all consideration in a timely manner, eliminate future legal expenses the Company would have expected to bear related to this suit, which could have included costly appellate legal actions and other matters.”
In the immediate aftermath of the 2020 election, Newsmax’s anchors and guests repeatedly amplified Donald Trump‘s claims of election fraud. Smartmatic sued Newsmax in November, 2021, claiming that as the network sought a larger audience, it published dozens of reports indicating that Smartmatic was in a “criminal conspiracy” to rig the results of the election, “and that its technology and software were used to switch votes from former President Trump to now President Biden.”
In a pre-trial summary judgment ruling, the judge in the case, Eric M. Davis, ruled that Smartmatic would not be able to collect punitive damages if a jury ruled in its favor, something that greatly reduced the amount that the election systems company could recover. The Independent first reported on the settlement amount.
Smartmatic also settled a defamation lawsuit it filed against One America News Network. Its case against Fox is still pending, with a trial expected next year.