Newsmax, a conservative media outlet, has agreed to pay $40 million to settle a defamation lawsuit with Smartmatic, a voting machine company, over false allegations that its machines helped Joe Biden win the 2020 presidential election. The settlement, which was reached in September, was revealed in a recent regulatory filing and includes an option for Smartmatic to purchase shares in Newsmax.

The lawsuit, filed in 2021, claimed that Newsmax "deliberately disseminated a continuous stream of falsehoods" about Smartmatic's voting machines, harming the company's business. Smartmatic alleged that Newsmax aired false claims about its machines, which were broadcast on the network's shows and social media platforms. The lawsuit sought damages for defamation and business disparagement.

This settlement is the latest development in a series of lawsuits filed by voting machine companies against conservative media outlets over false claims of election fraud. Smartmatic has also settled with One America News, while a judge recently ruled to allow its $2.7 billion defamation lawsuit against Fox Corp. to continue. Fox News agreed to pay Dominion, another voting machine company, $787 million in 2023 to settle similar allegations.

The settlement highlights the growing concern over disinformation and its impact on the tech industry. Voting machine companies are fighting to protect their reputations and businesses from false claims, which can have serious consequences for the integrity of democratic elections. The lawsuits also raise questions about the responsibility of media outlets to verify the accuracy of information before broadcasting it to their audiences.

Newsmax still faces another lawsuit from Dominion, which alleges that the network defamed the company by spreading false information about its voting machines. The outcome of this lawsuit could have significant implications for Newsmax's financial position and operations. According to a regulatory filing, an unfavorable outcome in the Dominion lawsuit could have a "material adverse effect" on Newsmax's financial position, results of operations, and cash flows.

The settlement between Newsmax and Smartmatic serves as a reminder of the importance of fact-checking and responsible reporting in the tech industry. As the industry continues to grapple with the challenges of disinformation, it is essential that media outlets take steps to verify the accuracy of information and hold themselves accountable for spreading false claims.