Newsmax stock gains after settling Dominion lawsuit for $67 million

Published 18/08/2025, 18:06
© Reuters.

Investing.com -- Newsmax Inc. (NYSE:NMAX) stock jumped 9% on Monday after the conservative media company announced it has reached a settlement agreement with Dominion Voting Systems for $67 million, significantly less than the $1.6 billion in damages originally sought in the defamation lawsuit.

The settlement, disclosed in a filing with the U.S. Securities and Exchange Commission on Monday, will be paid in installments over three fiscal years, which the company expects to fund through revenues. Dominion had filed the lawsuit in Delaware Superior Court in 2021, alleging defamatory statements in Newsmax’s coverage of the 2020 presidential election.

Newsmax maintained that its reporting was not defamatory and was "consistent with accepted journalistic standards," stating that it was "critically important for the American people to hear both sides of the election disputes that arose in 2020."

Despite confidence in its reporting, Newsmax cited concerns about receiving a fair trial under Judge Eric Davis, who also presided over Dominion’s case against Fox News that resulted in a $787 million settlement. The company claimed the judge’s rulings "strongly favored the plaintiffs and limited Newsmax’s ability to defend itself."

Among Newsmax’s concerns were what it described as a presumption of guilt, suppression of critical context, procedural irregularities, and excessive discovery requirements that included combing through personal communications of reporters and executives.

Newsmax CEO Christopher Ruddy characterized the court proceedings as "a direct attack on free speech and a free press," and encouraged businesses to reconsider incorporation in Delaware, where the lawsuit was filed.

The company stated that the settlement allows it to move forward with "clarity and renewed focus" on its operations and growth strategy.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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