Newsmax, a right-of-center news network that aired conspiracy theories about the outcome of the 2020 presidential election, agreed to pay $40 million last year to settle a defamation lawsuit brought by voting machine manufacturer Smartmatic.
The payout amount was disclosed for the first time in a regulatory filing made with the U.S. Securities and Exchange Commission (SEC) as part of an ongoing effort by Newsmax to launch an initial public offering (IPO). The IPO seeks to raise as much as $75 million by selling 7.5 million shares of common stock at a valuation of $10 per share, with a minimum order of 50 shares.
The $40 million price tag paid by Newsmax to Smartmatic was not disclosed when both parties entered into the agreement last year, which resolved the defamation case. Newsmax has already paid Smartmatic $20 million, and will pay the remaining $20 million in two installments by June. In addition to the cash payment, Newsmax offered Smartmatic 2,000 shares of preferred stock at an exercise price of $5,000 per share, which valued the offering at $10 million.
Smartmatic settled a similar lawsuit brought against One America News Network last April, and is still prosecuting a civil defamation case against Fox News Media, which is scheduled to go to trial later this year. Fox Corporation, the parent company of Fox News Media, agreed to pay $787.5 million to settle a defamation case brought by Dominion Voting Systems, a competitor of Smartmatic, over similar election-related conspiracy theories voiced by guests on its two cable news channels.
