Newsmax’s $40M settlement with Smartmatic Signals broader reckoning for election misinformation
Pranjal Chandra | Mar 15, 2025, 23:25 IST
( Image credit : AP )
Newsmax’s recent $40 million settlement with Smartmatic over defamation claims signals the serious financial consequences of spreading election misinformation. Larger lawsuits against media organizations, like the pending case against Fox News, highlight the growing trend of accountability for propagating false election narratives.
Newsmax’s recent disclosure of its $40 million settlement with Smartmatic highlights the ongoing legal and financial consequences of election misinformation. The revelation, included in a new regulatory filing, sheds light on previously undisclosed details of the agreement, which was reached in September 2024.
The lawsuit, filed in 2021, stemmed from false claims aired on Newsmax suggesting that Smartmatic’s voting machines were involved in manipulating the 2020 presidential election results in favor of Joe Biden. The settlement, finalized just before the case was set for trial, included both cash payments and an option for Smartmatic to purchase stock in Newsmax. According to the filing, Newsmax has already paid $20 million, with the remainder due by July.
The agreement underscores the growing financial toll of election-related defamation lawsuits on media outlets that amplified baseless claims of election fraud. Newsmax, a prominent right-wing news organization, acknowledged in a November 30, 2024, statement that the court had found the allegations about Smartmatic to be “factually false/untrue.”
Despite the settlement, Newsmax has been relatively silent on the matter. When contacted for comment, the company stated it would not provide further statements beyond its acknowledgment in November.
Smartmatic, meanwhile, remains engaged in a similar legal battle against Fox News, following a record-breaking $787.5 million settlement reached in 2023 between Fox and Dominion Voting Systems over similar defamation claims. Smartmatic’s attorney, J. Erik Connolly, expressed the company’s determination to hold Fox accountable, stating, “We look forward to presenting our evidence to a jury and finally having the opportunity to hold Fox accountable for its harmful actions.”
The Smartmatic case is not an isolated incident. The company previously settled a similar lawsuit against One America News (OAN) in April 2024 for an undisclosed amount. These legal actions reflect a broader trend in which voting technology companies seek accountability from media organizations that propagated election-related conspiracy theories.
Legal experts note that these settlements serve as a warning to news organizations about the potential consequences of spreading false information. As First Amendment scholar Jane Kirtley explains, “Media companies have long enjoyed strong protections under U.S. defamation law, but knowingly spreading false claims—particularly those with far-reaching political consequences—carries legal risks that can result in substantial financial penalties.”
Newsmax’s settlement raises questions about the future of conservative media outlets that have built their audiences, in part, by embracing controversial narratives. While Newsmax has attempted to reposition itself as a credible news source, its entanglement in costly defamation cases could influence editorial strategies moving forward.
Moreover, the financial strain of such settlements may reshape the landscape of right-wing media. As major lawsuits continue, smaller outlets may struggle to afford similar legal battles, potentially leading to a shift in how election-related coverage is handled.
With Smartmatic’s case against Fox News still pending, the broader reckoning for election misinformation is far from over. The outcomes of these lawsuits will likely shape future media coverage of elections and reinforce the importance of factual reporting in an era of heightened political polarization.
While Newsmax has settled its dispute with Smartmatic, its legal challenges highlight a critical shift in the accountability of media organizations. As defamation claims mount, news outlets may be forced to navigate the fine line between opinion-driven content and fact-based journalism, a distinction that could determine their financial and reputational survival in the years ahead.
The lawsuit, filed in 2021, stemmed from false claims aired on Newsmax suggesting that Smartmatic’s voting machines were involved in manipulating the 2020 presidential election results in favor of Joe Biden. The settlement, finalized just before the case was set for trial, included both cash payments and an option for Smartmatic to purchase stock in Newsmax. According to the filing, Newsmax has already paid $20 million, with the remainder due by July.
Financial and legal implications
Despite the settlement, Newsmax has been relatively silent on the matter. When contacted for comment, the company stated it would not provide further statements beyond its acknowledgment in November.
Smartmatic, meanwhile, remains engaged in a similar legal battle against Fox News, following a record-breaking $787.5 million settlement reached in 2023 between Fox and Dominion Voting Systems over similar defamation claims. Smartmatic’s attorney, J. Erik Connolly, expressed the company’s determination to hold Fox accountable, stating, “We look forward to presenting our evidence to a jury and finally having the opportunity to hold Fox accountable for its harmful actions.”
A growing trend of defamation lawsuits
Legal experts note that these settlements serve as a warning to news organizations about the potential consequences of spreading false information. As First Amendment scholar Jane Kirtley explains, “Media companies have long enjoyed strong protections under U.S. defamation law, but knowingly spreading false claims—particularly those with far-reaching political consequences—carries legal risks that can result in substantial financial penalties.”
Impact on conservative media
Moreover, the financial strain of such settlements may reshape the landscape of right-wing media. As major lawsuits continue, smaller outlets may struggle to afford similar legal battles, potentially leading to a shift in how election-related coverage is handled.
The path forward
While Newsmax has settled its dispute with Smartmatic, its legal challenges highlight a critical shift in the accountability of media organizations. As defamation claims mount, news outlets may be forced to navigate the fine line between opinion-driven content and fact-based journalism, a distinction that could determine their financial and reputational survival in the years ahead.