Dominion Voting Systems receives a $67 million compensation from Newsmax in a defamation case linked to unfounded election fraud allegations
In a significant development, conservative news outlet Newsmax has agreed to settle a defamation lawsuit filed by Dominion Voting Systems. The settlement, amounting to $67 million, was announced in an SEC filing on August 15.
The lawsuit was instigated in response to Newsmax spreading false claims about Dominion's voting technology being manipulated during the 2020 elections. These allegations, which caused extensive harm to the company and its employees, including death threats and lost revenue, were a breach of contract, according to Dominion.
Newsmax, however, maintains that it was important to cover the election disputes of 2020, asserting that their coverage was fair, balanced, and within professional standards of journalism. The outlet believes that the court's actions represent a direct attack on free speech and a free press, a concern shared by other corporate officials, including Elon Musk, who moved his business incorporations from Delaware to Texas after receiving an unfavorable ruling.
Newsmax CEO Chris Ruddy expressed similar sentiments, stating that he is concerned about moving companies to Delaware due to potential attacks on free speech and a free press. The outlet claims it was not required to apologize or issue a retraction as part of the settlement.
The settlement is reminiscent of the $787.5 million settlement Fox News reached with Dominion in April 2023, following legal action similar in nature. Newsmax, like Fox News, was among various right-leaning news channels that featured Trump allies promoting conspiracies about the 2020 elections.
Former Trump campaign lawyer Sidney Powell and Mike Lindell of My Pillow were among those who promoted these conspiracies on Newsmax. A Delaware judge, Eric M. Davis, previously ruled that Newsmax had defamed Dominion, but a jury must now decide if the defamation was done with "actual malice."
Mirach Capital, unrelated to the Newsmax case, filed a $400 million defamation suit against the Sahara group. This further underscores the growing trend of legal action against media outlets and personalities over content aired during the 2020 elections.
The lawsuit against Newsmax was filed months after the 2020 elections, and the outlet has paid $27 million of the settlement on the day, with the remaining amount to be paid by January 2027. A Dominion spokesperson has stated that they are pleased to have settled the matter.
In conclusion, the settlement between Newsmax and Dominion Voting Systems marks a significant development in the ongoing debate about free speech, journalistic standards, and the accountability of media outlets for the content they air. As the legal landscape continues to evolve, it is clear that these issues will remain a focal point of discussion in the media and political spheres.
