A judge in Delaware has issued a preliminary ruling in favor of Dominion Voting Systems in its ongoing lawsuit against right-of-center news outlet Newsmax over its airing of unsubstantiated conspiracy theories linked to the outcome of the 2020 presidential election.
The order was handed down by Delaware Superior Court Judge Eric Davis on Wednesday after both sides in the case sought summary judgments in their favor, which would have allowed the lawsuit to be resolved by on the judge’s opinion that the facts alleged were not in dispute.
Dominion’s motion for summary judgment was only approved in part, with Newsmax seeing its request denied in full. The order means some allegations may be decided by a jury trial in the future, should Dominion and Newsmax not settle the matter beforehand.
Dominion is seeking $1.6 billion in damages after Newsmax aired false claims that its machines had switched votes in favor of then-former Vice President Joe Biden against then-incumbent Donald Trump.
None of the election-rigging claims involving Dominion’s machines were presented with evidence, but Newsmax allowed its guests and commentators to assert them as fact. Biden won the election in 2020; Trump won a second non-consecutive term in office last year.
On Wednesday, Davis found numerous issues with the Newsmax broadcasts, including how the news outlet allowed Trump’s political allies to repeat claims that Dominion’s machines had switched votes, that the business was linked to Venezuela and that the company paid kickbacks to some government officials.
The judge left open the likelihood that a jury will have to determine if Newsmax’s conduct was “willful and wanton,” which could subject the company to punitive damages in addition to actual damages.
A spokesperson for Newsmax told reporters that the company “covered both sides of the 2020 election dispute fairly” and rejected that Newsmax ever defamed Dominion.
“This case represents a serious threat to free speech and a free press, and Newsmax will defend itself vigorously at trial,” the spokesperson said.
Last year, Newsmax settled a similar defamation case with voting machine manufacturer SmartMatic. That case ended after Newsmax affirmed a $20 million cash payment, additional installment payments that total another $20 million, and an offer to sell 2,000 shares of preferred stock at an exercise price of $5,000 per share.
Newsmax became a publicly-traded company late last month, with its stock price rising significantly from its initial public offer of $10 per share. It reached an all-time high of $280 per share within 48 hours, before settling down to around $45 per share by the end of the week.
On Wednesday, Newsmax’s stock price closed down $34.71, or 11.5 percent lower compared to the prior day. News of the judge’s order in the Dominion case was published after trading on Wall Street ended for the day, with its after hours stock price more than 1.5 percent lower.
The outcome of the case represents the latest legal victory for Dominion, which sued Newsmax rival Fox News Media over similar election-related conspiracy theories several years ago. In 2023, Fox agreed to settle the lawsuit for $787.5 million. The company was not required to admit any culpability or wrongdoing.
A Dominion executive also settled a separate defamation lawsuit brought against One American News Network over similar election-related conspiracy theories. Terms of that settlement were not disclosed.
