Newsmax has agreed to pay $40 million to Smartmatic in a settlement stemming from a defamation lawsuit regarding the 2020 U.S. presidential election. The settlement was revealed for the first time in a new regulatory filing by the media outlet. Filed last year, the settlement resolved claims made by Smartmatic, which accused Newsmax of falsely reporting that its voting machines had been used to manipulate election results in favor of Joe Biden.
The agreement, finalized in September, consists of both a cash payment and an option for Smartmatic to buy stock in Newsmax. So far, Newsmax has paid out $20 million, with the remainder due before July. In the filing, Newsmax expressed the expectation that fulfilling the financial terms of the settlement will preclude further legal costs, including potential appellate actions.
Last year, Newsmax admitted in a statement—as part of the settlement agreement—that the court declared allegations about Smartmatic’s involvement in altering election outcomes to be false. The disclosure of these payment details sheds light on previously confidential aspects of the settlement. Discussions on such confidential terms were not part of the public record when the lawsuit was initially resolved just before it went to trial.
This is not the first defamation case faced by Smartmatic. The company reached a separate settlement in April with One America News, although the terms of that agreement remain undisclosed. Smartmatic is currently engaged in a similar defamation lawsuit against Fox News.
The National Pulse has previously reported that the Smartmatic lawsuits against Newsmax and Fox News are at least partially underwritten by anti-Trump tech oligarch Reid Hoffman. Notably, Hoffman—a visitor to ‘Epstein Island’—invested in Smartmatic last year in what appears to be an effort to help fund the company’s litigation.