Newsmax Announces Settlement with Dominion Voting Systems
Newsmax (NYSE:NMAX) has reached a settlement agreement with Dominion Voting Systems, agreeing to pay $67 million to resolve a defamation lawsuit filed in 2021. The settlement amount, significantly lower than Dominion's original $1.6 billion claim, will be paid in installments over three fiscal years through company revenues.
The lawsuit stemmed from Newsmax's coverage of the 2020 presidential election. While maintaining its reporting was not defamatory, Newsmax cited concerns about receiving a fair trial in Delaware Court under Judge Eric Davis, pointing to various judicial rulings they believed limited their defense capabilities. The company has since redomiciled from Delaware to Florida and expects no disruption to its operations or growth strategy from the settlement.
Newsmax (NYSE:NMAX) ha raggiunto un accordo con Dominion Voting Systems e pagher脿 67 milioni di dollari per mettere fine a una causa per diffamazione intentata nel 2021. L'importo concordato, molto inferiore ai 1,6 miliardi di dollari richiesti inizialmente da Dominion, verr脿 corrisposto a rate nell'arco di tre esercizi tramite i ricavi aziendali.
La causa era nata dalla copertura da parte di Newsmax delle elezioni presidenziali del 2020. Pur sostenendo che le proprie cronache non fossero diffamatorie, Newsmax ha espresso dubbi sulla possibilit脿 di ottenere un processo equo davanti alla corte del Delaware presieduta dal giudice Eric Davis, citando diverse decisioni giudiziarie che, a loro avviso, avevano limitato le possibilit脿 di difesa. L'azienda si 猫 successivamente trasferita dal Delaware in Florida e ritiene che l'accordo non influir脿 sulle operazioni n茅 sulla strategia di crescita.
Newsmax (NYSE:NMAX) lleg贸 a un acuerdo con Dominion Voting Systems y pagar谩 67 millones de d贸lares para resolver una demanda por difamaci贸n presentada en 2021. La suma acordada, muy por debajo de los 1.600 millones de d贸lares que reclamaba Dominion, se abonar谩 en cuotas a lo largo de tres ejercicios fiscales con cargo a los ingresos de la compa帽铆a.
La demanda se origin贸 por la cobertura de Newsmax sobre las elecciones presidenciales de 2020. Aunque sostiene que su cobertura no fue difamatoria, Newsmax afirm贸 tener dudas sobre recibir un juicio justo en el tribunal de Delaware ante el juez Eric Davis, aludiendo a varias resoluciones judiciales que, seg煤n ellos, limitaron su capacidad de defensa. La empresa se ha trasladado del Delaware a Florida y espera que el acuerdo no altere sus operaciones ni su estrategia de crecimiento.
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Newsmax (NYSE:NMAX) a conclu un accord avec Dominion Voting Systems et versera 67 millions de dollars pour r茅gler un proc猫s en diffamation intent茅 en 2021. Le montant du r猫glement, bien inf茅rieur aux 1,6 milliard de dollars r茅clam茅s initialement par Dominion, sera pay茅 par versements sur trois exercices fiscaux 脿 partir des revenus de la soci茅t茅.
Le proc猫s faisait suite 脿 la couverture par Newsmax de l'茅lection pr茅sidentielle de 2020. Tout en affirmant que ses reportages n'茅taient pas diffamatoires, Newsmax a fait valoir des craintes quant 脿 l'obtention d'un proc猫s 茅quitable devant la cour du Delaware pr茅sid茅e par le juge Eric Davis, 茅voquant plusieurs d茅cisions judiciaires qui, selon eux, avaient limit茅 leurs moyens de d茅fense. L'entreprise a depuis transf茅r茅 son si猫ge du Delaware vers la Floride et estime que l'accord n'affectera ni ses op茅rations ni sa strat茅gie de croissance.
Newsmax (NYSE:NMAX) hat mit Dominion Voting Systems eine Vergleichsvereinbarung getroffen und zahlt 67 Millionen US-Dollar, um eine 2021 eingereichte Verleumdungsklage beizulegen. Der Vergleichsbetrag liegt deutlich unter den urspr眉nglich von Dominion geforderten 1,6 Milliarden US-Dollar und wird 眉ber drei Gesch盲ftsjahre in Raten aus den Unternehmensums盲tzen beglichen.
Die Klage resultierte aus der Berichterstattung von Newsmax 眉ber die Pr盲sidentschaftswahl 2020. Obwohl das Unternehmen betont, seine Berichterstattung sei nicht verleumderisch gewesen, 盲u脽erte Newsmax Bedenken, vor dem Gericht in Delaware unter Richter Eric Davis ein faires Verfahren zu erhalten, und verwies auf verschiedene richterliche Entscheidungen, die ihrer Ansicht nach die Verteidigung eingeschr盲nkt h盲tten. Das Unternehmen hat seinen Sitz inzwischen von Delaware nach Florida verlegt und rechnet nicht damit, dass der Vergleich seinen Betrieb oder seine Wachstumsstrategie beeintr盲chtigt.
- Settlement amount of $67 million is significantly lower than original $1.6 billion claim
- Payment structure spread over three years to be funded through revenues
- Company expects no disruption to operations or growth strategy
- Resolution provides clarity and allows company to move forward
- $67 million settlement payment obligation
- Legal proceedings impact on company's Delaware operations leading to redomiciliation
- Potential reputational impact from settlement
Insights
Newsmax settles Dominion lawsuit for $67M, avoiding potential $1.6B liability but facing significant financial impact spread over three years.
Newsmax has settled its defamation lawsuit with Dominion Voting Systems for
From a financial perspective, while the
The company's decision to settle appears driven primarily by procedural concerns rather than an admission of liability. Newsmax specifically cited Judge Eric Davis's rulings that allegedly limited their defense options, including: (1) early determinations that defamation occurred; (2) restrictions on presenting contextual evidence about Fox's larger settlement; (3) procedural irregularities regarding the addition of Newsmax's broadcasting subsidiary; and (4) extensive discovery requirements.
For investors, this settlement provides clarity on a significant contingent liability. The payment structure (
While the settlement resolves this specific legal challenge, Newsmax's explicit criticism of the judicial process could pose reputational considerations going forward. The company frames the settlement as a pragmatic business decision rather than an admission of wrongdoing, emphasizing its commitment to balanced reporting and diverse viewpoints.
BOCA RATON, FL / / August 18, 2025 / Newsmax Inc. (NYSE:NMAX) ("Newsmax" or the "Company") today announced that the Company has reached a settlement agreement with Dominion Voting Systems, concluding a defamation lawsuit that Dominion filed in Delaware Superior Court in 2021.
In a filing submitted Monday with the U.S. Securities and Exchange Commission, Newsmax disclosed that the parties have mutually agreed to resolve the litigation for a total payment of
Dominion Voting Systems originally filed its lawsuit against Newsmax in 2021, seeking
From the outset, Newsmax has always maintained that its reporting was not defamatory and that its coverage was consistent with accepted journalistic standards.
"Newsmax believed it was critically important for the American people to hear both sides of the election disputes that arose in 2020," the Company said in its statement. "We stand by our coverage as fair, balanced, and conducted within professional standards of journalism."
Despite its confidence in its reporting, Newsmax determined that the Delaware Court with Judge Eric Davis presiding over the case would not provide a fair trial wherein the Company could present standard libel defenses to a jury.
Judge Davis also presided over the case of Dominion vs. Fox News where he was harshly criticized by then Fox's chief legal officer for his actions and rulings.
"From the very beginning, Judge Davis ruled in ways that strongly favored the plaintiffs and limited Newsmax's ability to defend itself," Newsmax stated.
Among the examples Newsmax cited:
Presumption of guilt: Davis ruled early that Newsmax had committed defamation per se against the plaintiff in each of the 19 alleged statements - depriving the Company of any ability to present a full defense to the serious claims made before a jury which ordinarily decides upon such matters.
Suppression of critical context: The court indicated that it likely would refuse to allow the jury to hear that Fox News had already paid Dominion
$787 million in a settlement-information Newsmax considered essential for the jury to evaluate damages and for them to understand the plaintiff was more than compensated for any potential harm it had alleged.Procedural irregularities: Dominion initially sued Newsmax's parent company rather than its broadcasting subsidiary, Newsmax Broadcasting LLC. Instead of dismissing the suit, Judge Davis simply added the subsidiary and then, without notice or due process to Newsmax Broadcasting, he entered partial summary judgment against the subsidiary - even before it was served with a complaint in the lawsuit.
Excessive and intrusive discovery: Dominion was permitted to comb through extensive communications including personal emails, cell text messages, and other documents of reporters and company executives that were completely unrelated to the issues in the case.
The pattern of judicial rulings that consistently denied Newsmax due process left the Company to believe it would not receive a fair trial. Faced with these rulings and other constraints, Newsmax chose to settle the case.
"The Delaware Court under Judge Davis effectively enforced a confiscation of our property because our reporting was not always sympathetic to Joe Biden," Newsmax CEO Christopher Ruddy said.
"The actions taken against Newsmax, and earlier against Fox News, represent a direct attack on free speech and a free press," he continued.
Newsmax believes Judge Davis' rulings and actions in Delaware not only threaten the Company's own rights but also broader constitutional freedoms that will impact many other companies and individuals in the future.
"The judiciary's willingness to punish news organizations for reporting on matters of urgent national debate undermines the role of the press in a free society," the Company declared.
Newsmax likely could not have been sued in Delaware had it not been incorporated there at the time Dominion Voting Systems filed its lawsuit. Newsmax encourages every business incorporated in Delaware to reconsider and exit the state, as it did so to Florida. Businesses should re-domicile in jurisdictions that still believe in the rule of law and remain committed to protecting constitutional freedoms for all Americans.
While strongly disagreeing with the Delaware proceedings, Newsmax emphasized that the settlement allows the Company to move forward with clarity and renewed focus. The Company expects to pay the settlement from revenues over three fiscal years and anticipates no disruption to its operations or its growth strategy.
"With these matters resolved, Newsmax is positioned to continue its mission: delivering accurate reporting, fostering vigorous debate, and ensuring Americans have access to diverse viewpoints," the Company said.
"At a time when public trust in media is at historic lows, our commitment to balanced reporting, coverage of critical issues facing Americans and open dialogue has never been more important."
About Newsmax
Newsmax Inc. is listed on the NYSE (NMAX) and operates, through Newsmax Broadcasting LLC, one of the nation's leading news outlets, the Newsmax channel. The fourth highest-rated network is carried on all major pay TV providers. Newsmax's media properties reach more than 40 million Americans regularly through Newsmax TV, the Newsmax App, its popular website , and publications such as Newsmax Magazine. Through its social media accounts, Newsmax reaches 20 million combined followers. Reuters Institute says Newsmax is one of the top U.S. news brands and Forbes has called Newsmax "a news powerhouse."
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SOURCE: Newsmax Inc.
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