Voting technology firm, conservative outlet reach settlement in 2020 election defamation case

A Smartmatic representative demonstrates his company's system at a meeting of the Secure, Accessible & Fair Elections Commission, Aug. 30, 2018, in Grovetown, Ga. (Bob Andres/Atlanta Journal-Constitution via AP, File)

DOVER, Del. -

A settlement was reached Thursday in a defamation lawsuit brought by electronic voting machine manufacturer Smartmatic against conservative news outlet Newsmax for airing accusations about vote manipulation in the 2020 election made by allies of former U.S. president Donald Trump.

The settlement was announced just a few hours after jury selection began in the lawsuit filed by Florida-based Smartmatic against Newsmax.

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Smartmatic claimed that Newsmax program hosts and guests made false and defamatory statements in November and December 2020 implying that Smartmatic participated in rigging the results and that its software was used to switch votes.

Newsmax argued that it was simply reporting on newsworthy allegations being made by Trump and his supporters, including former New York City Mayor Rudy Giuliani and conservative attorney Sidney Powell. Newsmax has said the lawsuit represented a threat to freedom of speech and freedom of the press.

"Newsmax is pleased to announce it has resolved the litigation brought by Smartmatic through a confidential settlement," Newsmax said in a prepared statement.

Smartmatic said in a prepared statement that it was pleased the case against Newsmax had been completed.

The terms of the settlement were not disclosed, but Newsmax has said Smartmatic recently dropped its damages claims by more than US$1 billion.

Howard Cooper, an attorney for Newsmax, told Judge Eric Davis at a pretrial hearing last week that Newmax planned to question Smartmatic witnesses about why the company had previously sought damages of US$1.7 billion, but was now claiming only $400 million.

J. Erik Connolly, an attorney for Smartmatic, told the judge that the company was asserting lost revenue opportunities valued at $369.8 million, based on the purported damage to its reputation from the Newsmax reports.

Connolly also told the judge that Smartmatic would be seeking lost revenue damages only for the period from late 2020 to August of this year, when three current and former Smartmatic executives were indicted on criminal charges. in Florida. The indictments involve an alleged scheme to pay more than US$1 million in bribes to put Smartmatic voting machines in the Philippines.

Newsmax argued that the investigation and indictment should be presented to jurors as alternative reasons for any purported reputational harm or economic loss that Smartmatic blamed on Newsmax.

The Delaware lawsuit, which centred on Newsmax reports over a five-week period in late 2020, is one of several stemming from reports by conservative news outlets following the election.

Smartmatic also is suing Fox News for defamation in New York. The company recently settled a lawsuit in the District of Columbia against the One America News Network, another conservative outlet.

"We are now looking forward to our day in court against Fox Corp and Fox News for their disinformation campaign," Smartmatic said in Thursday's statement. "Lying to the American people has consequences. Smartmatic will not stop until the perpetrators are held accountable."

Dominion Voting Systems similarly filed several defamation lawsuits against those who spread conspiracy theories blaming its election equipment for Trump's loss. Last year, in a case presided over by Davis, Fox News settled with Dominion for US$787 million.