By Tom Hals
A high-stakes trial against Newsmax Media starts on Thursday in Wilmington, Delaware, as allegations surface that the conservative outlet damaged Smartmatic by spreading false information about the 2020 U.S. presidential election.
The trial will focus on whether Newsmax intentionally misled the public about the election to harm Smartmatic or if they were reporting claims made by Donald Trump and his allies in a fair manner.
Trump has continuously claimed, without evidence, that the election was stolen from him.
Newsmax faces significant risks in this trial, with potential damages reaching up to hundreds of millions of dollars. The outcome could also impact their plans for an initial public offering.
The trial is set to conclude just before the 2024 election, where Trump is a key contender against Vice President Kamala Harris.
Smartmatic filed the lawsuit against Newsmax in 2021, alleging false statements that damaged their reputation and caused them to lose business opportunities.
Newsmax's audience surged after the election, as Trump amplified their reporting on social media.
Smartmatic has refuted the claims made against them, stating that their machines were only used in Los Angeles County and have never faced security breaches.
The trial will shed light on the alleged wrongdoing by Newsmax and the impact of false reporting on Smartmatic.
Analysis:
This article highlights a crucial defamation trial between Newsmax Media and Smartmatic over false claims in the 2020 election. The outcome of this trial could have significant financial implications for Newsmax and could impact their plans for an IPO. It also underscores the consequences of spreading misinformation and the importance of fair and accurate reporting in the media landscape. As an investor or a consumer of news, it is essential to be aware of the impact of such trials on the companies involved and the broader implications for the media industry.