Smartmatic International Corporation: Newsmax to Pay Smartmatic $40 Million to Settle Defamation Lawsuit

By Connor Hart Newsmax will pay $40 million to settle a lawsuit brought by Smartmatic, which accused the right-wing cable news channel of making defamatory reports about the voting-technology company having helped rig the 2020 presidential election. West Palm Beach, Fla.-based Newsmax has already paid $20 million under the settlement, which was first disclosed in September. The company plans to make a $10 million payment by the end of the month, and an additional $10 million by the end of June, according to a Thursday filing with the Securities and Exchange Commission. The payments will be made with existing cash on hand, the company said. In addition to the $40 million payout, Newsmax granted Smartmatic a five-year cash exercise warrant to purchase 2,000 of its Series B preferred stock for $5,000 apiece, according to the filing. Terms of the settlement hadn't previously been disclosed. The companies struck their deal days before a trial on the matter was set to begin. Smartmatic said in September that it was pleased to settle the case. Newsmax previously defended its actions in court, stating that its 2020 news reports were protected by the First Amendment. Smartmatic waged lawsuits against several news organizations, public officials tied to President Donald Trump and conservative media journalists following the 2020 election for allegedly amplifying false claims that voting companies rigged the election in favor of former President Joe Biden. Write to Connor Hart at connor.hart@wsj.com (END) Dow Jones Newswires 03-13-25 2000ET By Connor Hart Newsmax will pay $40 million to settle a lawsuit brought by Smartmatic, which accused the right-wing cable news channel of making defamatory reports about the voting-technology company having helped rig the 2020 presidential election. West Palm Beach, Fla.-based Newsmax has already paid $20 million under the settlement, which was first disclosed in September. The company plans to make a $10 million payment by the end of the month, and an additional $10 million by the end of June, according to a Thursday filing with the Securities and Exchange Commission. The payments will be made with existing cash on hand, the company said. In addition to the $40 million payout, Newsmax granted Smartmatic a five-year cash exercise warrant to purchase 2,000 of its Series B preferred stock for $5,000 apiece, according to the filing. Terms of the settlement hadn't previously been disclosed. The companies struck their deal days before a trial on the matter was set to begin. Smartmatic said in September that it was pleased to settle the case. Newsmax previously defended its actions in court, stating that its 2020 news reports were protected by the First Amendment. Smartmatic waged lawsuits against several news organizations, public officials tied to President Donald Trump and conservative media journalists following the 2020 election for allegedly amplifying false claims that voting companies rigged the election in favor of former President Joe Biden. Write to Connor Hart at connor.hart@wsj.com (END) Dow Jones Newswires 03-13-25 2000ET