Delaware judge rules Newsmax coverage of Dominion Voting Systems was false, defamatory

WILMINGTON, Delaware (Reuters) -Newsmax Media published defamatory and false statements accusing Dominion Voting Systems of rigging the 2020 election, a Delaware judge ruled Wednesday, though a jury must still decide whether the conservative news outlet is on the hook for damages.

The ruling by Delaware Superior Court Judge Eric Davis is a partial victory for Dominion in its $1.6 billion lawsuit but leaves Newsmax with other possible legal defenses at a trial scheduled to begin on April 28 in Wilmington.

A Dominion representative said in a statement that the company was gratified by the court's thorough ruling.

A Newsmax representative said in a statement that the outlet covered both sides of the 2020 election fairly and called the case a threat to free speech and the free press.

Shares of Newsmax were down more than 10% in late Wednesday trading while broader stock indexes were posting their biggest rally in years. The company made a stellar debut on the New York Stock Exchange after an initial public offering that raised $75 million last month.

Denver-based Dominion sued Newsmax in 2021 for broadcasting false claims that Dominion machines stole the election from President Donald Trump, who was defeated by President Joe Biden.

Trump spent weeks after the vote claiming the election had been stolen without ever presenting credible evidence of fraud.

Davis said that Newsmax statements that Dominion aided in election fraud, manipulated votes using an algorithm, was linked to Venezuela, paid kickbacks to government officials and was tied to voting irregularities in Dallas were false and amounted to defamation.

Dominion must still prove at trial that Newsmax either knew the statements were false or acted with reckless disregard for the truth, a legal standard known as "actual malice."

Newsmax's stock began publicly trading last month and surged to more than $200 a share from its debut at $10 per share. It closed at $34.71 on Wednesday.

Newsmax last year agreed to pay $40 million to settle defamation allegations brought by Smartmatic, a voting machine company that brought similar defamation allegations.

Dominion settled a similar defamation lawsuit against Fox News in 2023 for $787.5 million just as the case was about to go to trial two years ago in front of the same judge.

(Reporting by Tom Hals in Wilmington, Delaware and Jack Queen in New York; Editing by Chris Reese and Sonali Paul)