Newsmax Pushes Businesses to Leave Delaware After $67M Dominion Deal

Newsmax's Settlement with Dominion and Calls for Business Relocation

Newsmax has agreed to pay $67 million to Dominion Voting Systems as part of a settlement in a defamation lawsuit. The case centered on the network’s coverage of the 2020 U.S. election, where it aired claims that were later deemed false. In response, Newsmax has urged businesses incorporated in Delaware to consider moving their operations to other states, suggesting that Delaware is no longer a favorable place for companies due to what it describes as an unfair judicial system.

In a statement released online, Newsmax pointed out that the company could not have been sued in Delaware if it had not been incorporated there at the time Dominion filed its lawsuit. The network encouraged businesses to reconsider their presence in Delaware, referencing its own move to Florida. According to Newsmax, businesses should re-domicile in jurisdictions that uphold the rule of law and protect constitutional freedoms.

Earlier this spring, Delaware Superior Court Judge Eric M. Davis ruled that there was “clear and convincing evidence” that Newsmax made false and defamatory claims about Dominion. This decision allowed the $1.6 billion lawsuit to proceed to trial. However, the trial, originally scheduled for April 28, was postponed.

A regulatory filing with the Securities and Exchange Commission revealed that Newsmax had reached a settlement with Dominion, agreeing to pay $67 million over two years, with $27 million due this month. This follows Newsmax’s previous agreement to pay Smartmatic $40 million to settle a similar lawsuit over 2020 election conspiracies.

Dominion expressed satisfaction with the settlement, though it did not provide further comments. The voting technology company, which faced baseless allegations that it "rigged" the 2020 election against Donald Trump, remained brief in its public statements. Meanwhile, Newsmax and its CEO, Chris Ruddy, used the opportunity to position themselves as victims of an unjust judicial system.

“From the very beginning, Judge Davis ruled in ways that strongly favored the plaintiffs and limited Newsmax's ability to defend itself,” the network stated. Ruddy claimed that the Delaware court under Judge Davis effectively confiscated Newsmax’s property because its reporting was not always sympathetic to Joe Biden. He also suggested that actions taken against Newsmax, and earlier against Fox News, represent a direct attack on free speech and a free press.

Ruddy was referring to the $787.5 million settlement that Fox News paid Dominion in 2023 to resolve a similar defamation lawsuit. Judge Davis also presided over that case. In its complaint, Dominion accused Fox News of promoting election denialism to boost ratings after Joe Biden’s victory. The company alleged that disgruntled MAGA viewers switched from Fox News to channels like Newsmax after Fox News’ early but accurate Arizona projection on election night.

The judiciary's willingness to punish news organizations for reporting on matters of urgent national debate, according to Newsmax, undermines the role of the press in a free society. The network reiterated this sentiment during multiple on-air segments, emphasizing that it stands by its reporting on the 2020 election and encouraging other companies to follow its lead by leaving Delaware.

On the show American Agenda, host Katrina Szish highlighted Newsmax’s statement about the settlement, noting that the network believes the Delaware court’s actions were a direct attack on free speech and the press. She also mentioned that Newsmax encourages companies to leave Delaware, as many others, including those led by Elon Musk, have done.

Szish concluded by stating that the $67 million settlement would not hinder Newsmax’s growth or future plans, and she invited viewers to visit the network’s “Invest in Newsmax” website for more information.

Earlier this year, Newsmax went public and became a meme stock, briefly surpassing the valuation of Fox Corp. and other major companies before its value declined.

As nearly five years have passed since the 2020 election sparked a wave of litigation over false claims of widespread voting fraud, most of the lawsuits brought by Dominion and others have reached their conclusion. However, some cases are still ongoing. For example, Fox News faces a $2.7 billion lawsuit from Smartmatic, although the network has won several favorable motions in court and has indicated its willingness to defend itself in trial.