Newsmax’s $40M Secret Settlement With Smartmatic Revealed in New Filing

Aaron M. Sprecher via AP

When Newsmax quietly settled its defamation lawsuit with Smartmatic last year, the financial details remained hidden from public view. But, as the network prepares to go public, those figures are now out in the open: $40 million and a stock warrant.

The figure is buried in an investment prospectus released this week and discovered by The Independent‘s Justin Baragona.

In the filing Newsmax, disclosed that it agreed to pay Smartmatic $40 million in cash — along with a five-year warrant allowing the tech firm to purchase 2,000 shares of the network’s preferred stock. Newsmax was accused of defaming Smartmatic by broadcasting false claims that the voting machine company played a role in rigging the 2020 presidential election in favor of Joe Biden over Donald Trump.

The revelation comes as Newsmax faces another massive legal battle with Dominion Voting Systems, which is set to go to trial in April.

Newsmax acknowledged the potential fallout in its filing, warning investors that “an unfavorable outcome in the matter could have a material adverse effect on the Company’s financial position, results of operations, and cash flows.”

For Newsmax, the settlement appears to represent a significant financial strain. The network pulled in $135 million in revenue in 2023, but its net losses hit $55 million in the first half of 2024. The company has also disclosed a separate, undisclosed settlement over a breach of contract dispute, with $34.6 million still left to pay.

As the outlet races toward an IPO, the prospectus made one thing clear: Newsmax is covering its legal settlements from existing cash on hand, insisting that “no proceeds of this Offering will be used” for payouts. With its Dominion trial looming and financial losses mounting, the network enters its next chapter under heavy legal and financial pressure.