Key Takeaways:
– Smartmatic has filed a defamation lawsuit, seeking about $400 million from Newsmax regarding false voter fraud claims in the 2020 presidential race.
– Newsmax issued an on-air clarification in December 2020 and voiced their First Amendment rights in response to the lawsuit.
– The jury will decide the intention behind Newsmax’s false reports and the financial judgement if found liable.
– Smartmatic also continues a $2.7 billion defamation lawsuit against Fox News that could proceed to trial in 2023.
Newsmax Faces Defamation Trial
As the 2024 presidential election nudges forward, another significant event draws nearer. Newsmax, the right-wing media outlet, is preparing for a trial on September 30 in a Delaware court. They will defend against a defamation lawsuit lodged by London-based voting machine technology firm, Smartmatic. A 2020 contentious election coverage caused the friction between these entities.
Smartmatic’s Lawsuit Explained
Smartmatic asserts that its reputation was damaged due to false statements broadcasted on Newsmax about voter fraud allegations in the previous presidential election. Specifically, the suit emphasizes that Newsmax offered a platform for Donald Trump and his associated attorneys to hint falsely that Smartmatic’s software was tampered with to secure President Biden’s victory. Contrary to these claims, Smartmatic’s voting equipment was solely deployed in Los Angeles County during 2020, not in any swing states impacting election results.
Smartmatic Losses and Damages
Smartmatic states that lack of credible evidence of fraud and the wholesale denial of Trump’s legal challenges were not adequately reflected in the time given for fraud claims by Newsmax. Consequently, Smartmatic alleges to have lost business due to these erroneous proclamations. Initially, Smartmatic had sought damages amounting to $1.7 billion, however, the figure has been scaled down to around $400 million, restricting the damages to the 2021 to 2023 time period.
On the flipside, Newsmax held that Trump’s claims carried news interest and their coverage fell within First Amendment rights. The company also broadcasted a clarification in December 2020 stating that it found no evidence to implicate Smartmatic in voting fraud, yet this has not aided in staving off the lawsuit.
Impact on Newsmax’s Finances
A substantial financial award to Smartmatic could indeed be a crippling blow for privately-owned Newsmax. Howard Cooper, one of Newsmax’s attorneys, described the current lawsuit as “bet the company” litigation. In context, earlier this year, Newsmax proactively filed for an initial public offering to raise $75 million whilst seeking additional capital through private placements.
Influence of Fox News-Dominion Settlement
Interestingly, Smartmatic’s lawsuit will be tried by Judge Eric M. Davis, who presided over the Dominion’s case against Fox News. This fact adds intrigue since Davis had ruled that Fox News aired false claims about the 2020 election in favor of President Biden. It’s essential to note though; Davis has stated that the prior settlement will not serve as evidence in the Smartmatic-Newsmax case. However, the jury will still be tasked with determining whether Newsmax intentionally broadcasted false statements to harm Smartmatic.
Implication for Future Cases
The outcome of the case will undoubtedly be observed intensively by Fox News executives. This is mainly because Smartmatic also has a defamation lawsuit of $2.7 billion pending against the Murdoch-controlled media outlet, which may advance to trial in New York in the coming year.
In conclusion, the upcoming trial of Smartmatic versus Newsmax promises to be a significant event, setting potential precedents for similar legal battles in the future and defining the line between free speech and defamation within the media industry.