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A Delaware Superior Court judge has set aside four weeks beginning on September 30 for the trial in a defamation case brought by voting machines provider Smartmatic USA Corp. against Newsmax Media Inc. That litigation comes from a dispute spun out of Newsmax's coverage alleging Smartmatic was involved with "deep state" conspiracy theories that plagued the 2020 election.

Smartmatic and Newsmax Defamation Suit :  Smartmatic Look to prove Libel

The complaint stems from a federal lawsuit filed by voting technology company Smartmatic in November 2021, which claimed Newsmax defamed the firm when it published claims by third parties that its machines were involved in efforts to steal votes on behalf of then-President Donald Trump. Many of Newsmax's reports were based on allegations from Trump attorney Sidney Powell and others that Smartmatic helped fix tabulations to favor President Joe Biden.

At the final pre-trial hearing Thursday, Smartmatic attorney J. Erik Connolly said it showed actual malice — an important standard in defamation cases for proving there was deliberately false information published with knowledge of its falsity or a reckless disregard to whether it was true — by Fox News. He urged the judge to pronounce against Smartmatic on that question, notingthat Newsmax showed a reckless disregard for the truth when it aired defamatory comments. Newsmax also falsely stated that votes processed across the country, when in fact its systems had only been used by Los Angeles County, Connolly said.

The Neutral Reportage Doctrine, Newsmax's Defense

But Newsmax lawyer Misha Tseytlin said the prisoners' account was protected under a privilege that covers "neutral reporting," which shields media outlets from liability for publishing serious accusations made by credible sources. Tseytlin contended that Newsmax was only reporting on a major controversy from both angles and it is not their job to verify allegations made by people such as Powell and Rudy Giuliani. He also noted that the Florida law at issue in Oaks’ case is more favorable to neutral reporting than a New York law used by plaintiffs including Dominion Voting Systems Inc. against Fox Corp and its hosts, who have faced defamation claims for their spread of misinformation about 2020 election fraud as well.

Billions in Alleged Damages

In its lawsuit, Smartmatic says Newsmax's defamatory coverage cost the company billions in lost value and contracts due to false reports by the network caused it irreparable harm. In arguing the case, Connolly claimed that Fox News defamed Smartmatic on purpose to increase its ratings and align with Trump supporters. In turn, Newsmax challenged Smartmatic to demonstrate any causal relationship between the reports and financial harm.

Smartmatic and Newsmax Defamation Suit : Historical Context

The trial is being heard by Judge Eric M. Davis, who also oversaw Dominion Voting Systems' defamation case against Fox that settled for $787.5 million last week; If that ultimately results in a trial, the Smartmatic and Newsmax defamation suit could have similar consequences.