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Smartmatic's defamation lawsuit against Newsmax is headed to trial. What's at stake?

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Smartmatic's defamation lawsuit against Newsmax is headed to trial. What's at stake?

The 2024 presidential election is approaching, but the legal battle over how the 2020 race was covered by right-wing channel Newsmax isn’t going away quietly.

On Sept. 30, Newsmax will head into a Delaware court to defend itself against a defamation lawsuit filed by Smartmatic, a voting machine technology company. Smartmatic says its reputation was damaged by false statements made on the network regarding voter fraud allegations in the 2020 presidential election.

Smartmatic’s suit says Newsmax provided a platform for its hosts, Donald Trump and the former president’s attorneys and allies to falsely claim that the company’s software was manipulated to deliver the election for President Biden.

Smartmatic’s equipment was used only in Los Angeles County in 2020 and not in any of the swing states that helped decide the election.

The claims were given ample airtime on Newsmax despite a lack of credible evidence of fraud and a complete rejection of Trump’s legal challenges in the courts. Smartmatic says it lost business because of the bogus statements.

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“Newsmax’s own people repeatedly and intentionally lied to the public,” Smartmatic attorney Erik Connolly said. “This trial will allow the American judicial process to finally hold Newsmax accountable for knowingly peddling lies about Smartmatic.”

Newsmax countered that Trump’s claims were newsworthy and that its reporting on them was protected by the 1st Amendment. The company also issued an on-air clarification in December 2020 stating that it found no evidence that Smartmatic was involved in voting fraud.

What’s at stake?

Smartmatic is looking for substantial financial damages in the case, which could be a devastating blow to the privately held Boca Raton, Fla.-based Newsmax.

Smartmatic’s lawsuit originally sought $1.7 billion in damages. The figure is now between $400 million and $600 million according to a Newsmax attorney. Smartmatic is limiting the damages to the period between 2021 and 2023 as a current federal investigation of the company is not put into evidence.

A huge award could be fatal to Newsmax. Howard Cooper, one of Newsmax’s attorneys, described the case as “bet the company” litigation at a pretrial hearing Monday.

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Fox News settled a similar defamation case with Dominion Voting Systems, agreeing to pay $787 million just before the trial was set to begin in April 2023. But parent company Fox Corp. had billions in cash on hand at the time and sustained only a single quarterly loss due to the payment.

Earlier this year, Newsmax filed for an initial public offering to raise $75 million and a private placement to generate additional capital. The investor presentation said the company expects to take in revenue of $180.5 million in 2024.

The network, launched in 2014, has no blue-chip advertisers, depending largely on direct marketers such as MyPillow.com for ad revenue, and has battled with pay-TV operators to get compensated for its programming.

Year-to-date, Newsmax is averaging 280,000 viewers in prime time compared with more than 2 million for ratings leader Fox News, according to Nielsen data.

Will Dominion’s settlement with Fox News have any influence?

Smartmatic’s suit will be tried before Judge Eric M. Davis, the jurist who heard Dominion’s case against Fox News. Davis ruled that Fox News aired false statements in its coverage of former President Trump’s claims that the election was rigged to help President Biden. A jury was selected to decide on damages before a settlement was reached.

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Davis has ruled that the settlement will not be admissible as evidence in the Smartmatic-Newsmax case.

Davis found that Newsmax aired false statements about Smartmatic’s role in the election. But he did not rule on whether this was done with intent to harm the company. The jury will be asked to answer that question and decide on a financial judgment if Newsmax is found guilty.

How could Smartmatic’s history come into play?

Smartmatic‘s attorneys want to keep the jury from hearing about the federal investigation of its executives for allegedly bribing officials in the Philippines. The company has not been charged but remains under investigation.

Smartmatic President Roger Piñate and two other employees were indicted by the U.S. Department of Justice in August for allegedly making illegal payments to a former Philippines elections commissioner in order to get its voting machines and services used in the country’s 2016 election.

Davis ruled in the pretrial hearing that he will not allow the recent indictments to be presented in court, but there is still a possibility they could come up. (Smartmatic reduced its damages claim to keep the investigation from being presented as evidence.)

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Newsmax is expected to cite Smartmatic’s other legal issues as the reason for its losing business, rather than the network’s five weeks of coverage of Trump’s false election fraud claims in 2020.

“The Department of Justice alleged Smartmatic executives engaged in money laundering and allegedly bribed an election official,” a Newsmax representative said in a statement when the indictment was handed down. “Smartmatic can hardly claim that Newsmax’s coverage harmed its reputation. This case is not about the left versus right, but about a free press being allowed to do its job.”

Smartmatic said the federal investigation is unrelated to voter fraud, which is what Newsmax discussed on its air.

What Smartmatic’s suit against Newsmax means to Fox News

Executives and attorneys at Fox News will be watching the proceedings with much interest, as Smartmatic also has a $2.7-billion defamation suit against the Murdoch-controlled network that could go to trial in New York next year. In pretrial hearings, attorneys for Fox News have attacked the size of the damages Smartmatic is seeking.

By settling its case with Dominion, Fox News avoided having Rupert Murdoch and its on-air stars such as Sean Hannity called as witnesses. But with the Smartmatic case moving forward, jurors could see Newsmax personalities such as Greg Kelly on the witness stand.

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DHS responds after reports CISA chief allegedly failed polygraph for classified intel access

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DHS responds after reports CISA chief allegedly failed polygraph for classified intel access

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The Department of Homeland Security (DHS) is disputing reports that acting Cybersecurity and Infrastructure Security Agency (CISA) Director Madhu Gottumukkala failed a polygraph after seeking access to highly sensitive intelligence, as an internal investigation and the suspension of multiple career cybersecurity officials deepen turmoil inside the agency, according to a report.

Politico reported that Gottumukkala pushed for access to a tightly restricted intelligence program that required a counter-intelligence polygraph and that at least six career staffers were later placed on paid administrative leave for allegedly misleading leadership about the requirement, an assertion DHS strongly denies.

The outlet said its reporting was based on interviews with four former and eight current cybersecurity officials, including multiple Trump administration appointees who worked with Gottumukkala or had knowledge of the polygraph examination and the events that followed. All 12 were granted anonymity over concerns about retaliation, according to Politico.

DHS pushed back on the reporting, saying the polygraph at issue was not authorized and that disciplinary action against career staff complied with department policy.

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KRISTI NOEM SAYS BIDEN USED DHS ‘TO INVADE THE COUNTRY WITH TERRORISTS’

DHS disputes reports that acting CISA Director Madhu Gottumukkala failed a polygraph as staff are suspended amid an internal investigation and intel access dispute. (CISA Facebook)

“Acting Director Madhu Gottumukkala did not fail a sanctioned polygraph test. An unsanctioned polygraph test was coordinated by staff, misleading incoming CISA leadership,” DHS Assistant Secretary Tricia McLaughlin said in a statement provided to Fox News Digital. “The employees in question were placed on administrative leave, pending conclusion of an investigation.”

“We expect and require the highest standards of performance from our employees and hold them directly accountable to uphold all policies and procedures,” she continued. “Acting Director Gottumukkala has the complete and full support of the Secretary and is laser focused on returning the agency to its statutory mission.”

Politico also reported that Gottumukkala failed a polygraph during the final week of July, citing five current officials and one former official.

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WHITE HOUSE CALLS REPORT ABOUT TRUMP CONSIDERING FIRING NOEM ‘TOTAL FAKE NEWS’

DHS disputes reports that acting CISA Director Madhu Gottumukkala failed a polygraph as staff are suspended amid an internal investigation and intel access dispute. (CISA Facebook)

The test was administered to determine whether he would be eligible to review one of the most sensitive intelligence programs shared with CISA by another U.S. spy agency, according to the outlet.

That intelligence was part of a controlled access program with strict distribution limits, and the originating agency required any CISA personnel granted need-to-know access to first pass a counter-intelligence polygraph, according to four current officials and one former official cited by Politico.

As a civilian agency, most CISA employees do not require access to such highly classified material or a polygraph to be hired, though polygraphs are commonly used across the Pentagon and U.S. intelligence community to protect the government’s most sensitive information.

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ICE LEADERSHIP SHAKEUP EXPOSES GROWING DHS FRICTION OVER DEPORTATION TACTICS, PRIORITIES

A person administers a polygraph test.  (Getty Images)

Politico reported that senior staff raised questions on at least two occasions about whether Gottumukkala needed access to the intelligence, but said he continued pressing for it even if it meant taking a polygraph, citing four current officials.

The outlet also reported that an initial access request in early June, signed by mid-level CISA staff, was denied by a senior agency official who determined there was no urgent need-to-know and noted that the agency’s previous deputy director had not viewed the program.

That senior official was later placed on administrative leave for unrelated reasons in late June, and a second access request signed by Gottumukkala was approved in early July after the official was no longer in the role, according to current officials cited by Politico.

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KRISTI NOEM FACES FIRST MAJOR HOMELAND SECURITY GRILLING AS LAWMAKERS PRESS HER ON TERROR THREATS

DHS disputes reports that acting CISA Director Madhu Gottumukkala failed a polygraph as staff are suspended amid an internal investigation and intel access dispute. (Celal Gunes/Anadolu Agency via Getty Images)

Despite being advised that access to the most sensitive material was not essential to his job and that lower-classification alternatives were available, Gottumukkala continued to pursue access, officials told the outlet.

Officials interviewed by Politico said they could not definitively explain why Gottumukkala did not pass the July polygraph and cautioned that failures can occur for innocuous reasons such as anxiety or technical errors, noting that polygraph results are generally not admissible in U.S. courts.

On Aug. 1, shortly after the polygraph, at least six career staff involved in scheduling and approving the test were notified in letters from then–acting DHS Chief Security Officer Michael Boyajian that their access to classified national security information was being temporarily suspended for potentially misleading Gottumukkala, according to officials and a letter reviewed by Politico.

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NOEM HITS BACK AT FEMA CRITICS, REVEALS VISION FOR DISASTER RELIEF AGENCY

“This action is being taken due to information received by this office that you may have participated in providing false information to the acting head of the Cybersecurity and Infrastructure Security Agency (CISA) regarding the existence of a requirement for a polygraph examination prior to accessing certain programs,” the letter said. “The above allegation shows deliberate or negligent failure to follow policies that protect government information, which raises concerns regarding an individual’s trustworthiness, judgment, reliability or willingness and ability to safeguard classified information.”

In a separate letter dated Aug. 4, the suspended employees were informed by Acting CISA Chief Human Capital Officer Kevin Diana that they had been placed on paid administrative leave pending an investigation, according to current and former officials and a copy reviewed by Politico.

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Gottumukkala was appointed CISA deputy director in May and previously served as commissioner and chief information officer for South Dakota’s Bureau of Information and Technology, which oversees statewide technology and cybersecurity initiatives.

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CISA said in a May press release that Gottumukkala has more than two decades of experience in information technology and cybersecurity across the public and private sectors.

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News Analysis: Trump’s math problem: Rising prices, falling approval ratings

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News Analysis: Trump’s math problem: Rising prices, falling approval ratings

President Trump made dozens of promises when he campaigned to retake the White House last year, from boosting economic growth to banning transgender athletes from girls’ sports.

But one pledge stood out as the most important in many voters’ eyes: Trump said he would not only bring inflation under control, but push grocery and energy prices back down.

“Starting the day I take the oath of office, I will rapidly drive prices down, and we will make America affordable again,” he said in 2024. “Your prices are going to come tumbling down, your gasoline is going to come tumbling down, and your heating bills and cooling bills are going to be coming down.”

He hasn’t delivered. Gasoline and eggs are cheaper than they were a year ago, but most other prices are still rising, including groceries and electricity. The Labor Department estimated Thursday that inflation is running at 2.7%, only a little better than the 3% Trump inherited from Joe Biden; electricity was up 6.9%.

And that has given the president a major political problem: Many of the voters who backed him last year are losing faith.

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“I voted for Trump in 2024 because he was promising America first … and he was promising a better economy,” Ebyad, a nurse in Texas, said on a Focus Group podcast hosted by Bulwark publisher Sarah Longwell. “It feels like all those promises have been broken.”

Since Inauguration Day, the president’s job approval has declined from 52% to 43% in the polling average calculated by statistician Nate Silver. Approval for Trump’s performance on the economy, once one of his strongest points, has sunk even lower to 39%.

That’s dangerous territory for a president who hopes to help his party keep its narrow majority in elections for the House of Representatives next year.

To Republican pollsters and strategists, the reasons for Trump’s slump are clear: He overpromised last year and he’s under-performing now.

“The most important reasons he won in 2024 were his promises to bring inflation down and juice the economy,” Republican pollster Whit Ayres said. “That’s the reason he won so many voters who traditionally had supported Democrats, including Hispanics. … But he hasn’t been able to deliver. Inflation has moderated, but it hasn’t gone backward.”

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Last week, after deriding complaints about affordability as “a Democrat hoax,” Trump belatedly launched a campaign to convince voters that he’s at work fixing the problem.

But at his first stop, a rally in Pennsylvania, he continued arguing that the economy is already in great shape.

“Our prices are coming down tremendously,” he insisted.

“You’re doing better than you’ve ever done,” he said, implicitly dismissing voters’ concerns.

He urged families to cope with high tariffs by cutting back: “You know, you can give up certain products,” he said. “You don’t need 37 dolls for your daughter. Two or three is nice, but you don’t need 37 dolls.”

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Earlier, in an interview with Politico, Trump was asked what grade he would give the economy. “A-plus-plus-plus-plus-plus,” he said.

On Wednesday, the president took another swing at the issue in a nationally televised speech, but his message was basically the same.

“One year ago, our country was dead. We were absolutely dead,” he said. “Now we’re the hottest country anywhere in the world. … Inflation is stopped, wages are up, prices are down.”

Republican pollster David Winston, who has advised GOP members of Congress, said the president has more work to do to win back voters who supported him in 2024 but are now disenchanted.

“When families are paying the price for hamburger that they used to pay for steak, there’s a problem, and there’s no sugarcoating it,” he said. “The president’s statements that ‘we have no inflation’ and ‘our groceries are down’ have flown in the face of voters’ reality.”

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Another problem for Trump, pollsters said, is that many voters believe his tariffs are pushing prices higher — making the president part of the problem, not part of the solution. A YouGov poll in November found that 77% of voters believe tariffs contribute to inflationary pressures.

Trump’s popularity hasn’t dropped through the floor; he still has the allegiance of his fiercely loyal base. “He is at his lowest point of his second term so far, but he is well within the range of his job approval in the first term,” Ayres noted.

Still, he has lost significant chunks of his support among independent voters, young people and Latinos, three of the “swing voter” groups who put him over the top in 2024.

Inflation isn’t the only issue that has dented his standing.

He promised to lead the economy into “a golden age,” but growth has been uneven. Unemployment rose in November to 4.6%, the highest level in more than four years.

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He promised massive tax cuts for the middle class, but most voters say they don’t believe his tax cut bill brought them any benefit. “It’s hard to convince people that they got a tax break when nobody’s tax rates were actually cut,” Ayres noted.

He kept his promise to launch the largest deportation campaign in U.S. history — but many voters complain that he has broken his promise to focus on violent criminals. In Silver’s average, approval of his immigration policies dropped from 52% in January to 45% now.

A Pew Research Center survey in October found that 53% of adults, including 71% of Latinos, think the administration has ordered too many deportations. However, most voters approve of Trump’s measures on border security.

Republican pollsters and strategists say they believe Trump can reverse his downward momentum before November’s congressional election, but it may not be easy.

“You look at what voters care about most, and you offer policies to address those issues,” GOP strategist Alex Conant suggested. “That starts with prices. So you talk about permitting reform, energy prices, AI [artificial intelligence] … and legislation to address healthcare, housing and tax cuts. You could call it the Affordability Act.”

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“A laser focus on the economy and the cost of living is job one,” GOP pollster Winston said. “His policies on regulation, energy and taxes should have a positive impact, but the White House needs to emphasize them on a more consistent basis.”

“People voted for change in 2024,” he warned. “If they don’t get it — if inflation doesn’t begin to recede — they may vote for change again in 2026.”

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DNI Gabbard warns ‘Islamist ideology’ threatens Western freedom at AmFest

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DNI Gabbard warns ‘Islamist ideology’ threatens Western freedom at AmFest

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Director of National Intelligence Tulsi Gabbard delivered a blunt warning about “Islamist ideology” at a high-profile conservative gathering Saturday, casting the threat as fundamentally incompatible with Western freedom.

“The threats from this Islamist ideology come in many forms,” Gabbard told an audience at Turning Point USA’s (TPUSA) annual AmericaFest conference.

RIFT IN MAGA MOVEMENT ON FULL DISPLAY AT TPUSA’S AMERICAFEST

Director of National Intelligence Tulsi Gabbard oversees the nation’s 18 intelligence agencies. (Ross D. Franklin/AP)

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“As we approach Christmas, right now in Germany they are canceling Christmas markets because of this threat.”

Gabbard, who oversees the nation’s 18 intelligence agencies, said the ideology stands in direct conflict with American liberty.

“When we talk about the threat of Islamism, this political ideology, there is no such thing as individual freedom or liberty,” she said.

Gabbard’s remarks were notable given her role overseeing the nation’s intelligence community, a position that traditionally avoids overt ideological framing in public remarks, particularly at partisan political events.

TPUSA BEGAN AS A SCRAPPY CAMPUS GROUP AND GREW INTO A NATIONAL, MULTIMILLION-DOLLAR POLITICAL FORCE

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AmericaFest 2025, hosted by Turning Point USA, is taking place in Phoenix, Arizona. (Jon Cherry/AP)

Turning Point USA’s AmericaFest has become a marquee gathering for conservative activists, lawmakers and influencers, where national security, immigration and cultural issues are increasingly framed as part of a broader ideological struggle.

The Office of the Director of National Intelligence did not immediately respond to a request for comment clarifying whether Gabbard’s remarks reflected official U.S. intelligence assessments or her personal views.

TPUSA founder Charlie Kirk positioned the organization as a hub for conservative youth activism, frequently hosting high-profile figures who frame political and security debates in ideological terms.

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Charlie Kirk, who founded Turning Point USA, was killed on Sept. 10 while speaking at an event at Utah Valley University. (Joe Raedle/Getty Images)

Kirk carried that influence onto college campuses nationwide, drawing large crowds for live, unscripted debates on religion, Islamism, free speech, immigration and American culture. It was at an event at Utah Valley University where he was fielding open-mic questions from thousands on Sept. 10 where he was shot and killed.

The charged nature of modern political activism has also raised alarms about political violence, with authorities increasingly warning of threats tied to large public gatherings.

European security officials have raised security alerts around holiday events in recent years following a series of Islamist-inspired attacks, including deadly incidents in Germany, France and Belgium, prompting heightened police presence or temporary cancellations at some Christmas markets.

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