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Newsmax ( NMAX ) claims Delaware judge biased against them

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Settlement includes three installments totaling $67

million

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Newsmax ( NMAX ) stock rises 5% after settlement announcement

By Tom Hals

WILMINGTON, DEL., Aug 18 (Reuters) - Newsmax Media

has agreed to pay $67 million to Dominion Voting

Systems to settle a $1.6 billion defamation lawsuit over false

claims that the voting machine company rigged the 2020 election

against U.S. President Donald Trump, it said on Monday.

In an unusual statement, Newsmax ( NMAX ) said it chose to settle

because the Delaware judge handling the case was prejudiced

against the company, and it stood by its coverage as fair and

balanced.

The Delaware Superior Court declined to comment.

Denver-based Dominion had sought $1.6 billion when it filed

the lawsuit in 2021, accusing Newsmax ( NMAX ) of spreading false

claims that Dominion helped steal the election for President Joe

Biden.

Newsmax ( NMAX ) and Newsmax Broadcasting LLC agreed to pay Dominion

and its affiliates over three installments, starting with $27

million that was paid on Friday. Newsmax ( NMAX ) will pay $20 million on

January 15 and another $20 million on January 15, 2027.

The company said it would be paid from its revenue.

"We are pleased to have settled this matter," a Dominion

spokesperson said in a statement.

Newsmax ( NMAX ) stock rose around 5% on the New York Stock Exchange

to $12.75 a share. The company said Monday's agreement resolved

all litigation against it over its coverage of the 2020 election

when Biden defeated Trump, who then beat Biden in 2024.

"From the very beginning, Judge (Eric) Davis ruled in ways

that strongly favored the plaintiffs and limited Newsmax's ( NMAX )

ability to defend itself," Newsmax ( NMAX ) said. It said it was being

punished for not being sympathetic to Biden, who is from

Delaware.

Newsmax ( NMAX ) said Davis deprived the company of its ability to

present a full defense when he ruled in April that Newsmax ( NMAX )

published defamatory and false statements.

While Davis said damages would be determined by a jury trial

that was expected later this year, Newsmax ( NMAX ) said he refused to

let the jury hear that Fox Corp ( FOXA ) and Fox News agreed to

pay $787.5 million to Dominion in 2023 to settle similar

defamation claims.

Newsmax ( NMAX ) said that information was critical for the jury to

understand that Dominion had already been compensated, according

to Newsmax ( NMAX ). The Fox case was also overseen by Davis.

The case was filed in Delaware, where Newsmax ( NMAX ) was

incorporated at the time. It has since reincorporated in

Florida, one of many large public companies that have left the

state due to alleged bias in its courts.

Newsmax ( NMAX ) also paid $40 million to settle allegations brought

by another voting machine company, Smartmatic, in a separate

case that was also overseen by Davis.

On Monday, Trump said on social media he would move to get

rid of mail-in ballots as well as "seriously controversial"

voting machines. He did not identify voting machines from any

particular company.