Newsmax Settles Defamation Case On Eve of Trial

Smartmatic on Thursday settled its defamation lawsuit against Newsmax, the right-wing cable news channel that had spread false claims of election fraud, the companies said.

The NY Times reports the details of the settlement, reached as the jury was being selected before the trial, were not immediately disclosed.

Smartmatic, an election technology company, had accused Newsmax of trying to entice viewers from its rival, Fox News, by airing false reports that Smartmatic helped swing the 2020 election for Joseph R. Biden Jr. The lawsuit was filed in Delaware Superior Court in 2021.

Jury selection in the case began on Thursday morning in Wilmington, Del., and the trial had been expected to take up to four weeks.

“Newsmax is pleased to announce it has resolved the litigation brought by Smartmatic through a confidential settlement,” Newsmax said in its statement.

A Smartmatic spokesman said in a statement: “Lying to the American people has consequences. Smartmatic will not stop until the perpetrators are held accountable.”

The 12th-hour settlement avoids the spectacle of a closely watched trial. It is not unusual for parties in defamation cases to reach a deal before a trial. In a similar case last year, Fox News settled a lawsuit brought by Dominion Voting Systems for $787.5 million just minutes before opening statements were to begin.

In a statement released to Media Confiendetial Friday, a Fox spox said, “Smartmatic unsurprisingly chose to settle its case with Newsmax on the eve of trial after a series of major setbacks devastated its case. Those setbacks included: the fact that Smartmatic's President and Co-Founder, as well as one current and one former executive, were federally indicted for bribery in obtaining key businesses in the Philippines; Smartmatic was forced to cut its damage claims from $1.7 billion to $370 million to avoid evidence of those indictments; and the Delaware Judge ruled that Smartmatic could not recover punitive damages. Smartmatic's claims against Fox are similarly impaired, unsupported by the facts and intended to chill First Amendment freedoms. We look forward to defending this case when it goes to trial.”