
Unpaid Legal Fees Lead to Major Lawsuit
A Boston law firm, Todd & Weld, is taking legal action against Newsmax, a prominent conservative media outlet, due to an unpaid legal bill exceeding $400,000. The lawsuit was filed in Suffolk Superior Court on September 18, asserting that Newsmax is in breach of contract for refusing to settle legal fees related to various libel cases.
As the lead trial counsel for Newsmax, Todd & Weld represented the network in lawsuits filed by Dominion and Smartmatic, two voting technology firms. Both companies claimed that Newsmax's coverage of voter fraud during the 2020 presidential election was defamatory. Smartmatic had sought over $1 billion in damages, while Dominion aimed for $67 million. Newsmax settled both lawsuits, with significant payments made, including a $40 million settlement to Smartmatic.
Cash Flow Crisis at Newsmax?
Despite settling these high-stakes cases, Todd & Weld's complaint alleges that Newsmax has failed to pay its final fees, which amount to approximately $426,500. Following the Dominion settlement on August 15, Newsmax CEO Christopher Ruddy reportedly declared that the company would not pay any further bills, claiming a “couple hundred thousand dollar haircut is fair” due to their perception of the lawsuit outcomes.
Facing Consequences of Non-Payment
According to the complaint, Ruddy's administration acknowledges the outstanding amount but refuses to pay it. His lack of communication—through calls or text—is cited as a reason for Todd & Weld to file the lawsuit. Newsmax, through a spokesperson, asserted that they dispute some services attributed to attorney Howard Cooper, noting that they believe he mishandled certain representations.
High Stakes in Media Accountability
Newsmax is walking a tightrope between financial accountability and its contentious past associated with election coverage. This lawsuit not only highlights issues of unpaid debt but raises questions about the financial viability of media organizations embroiled in legal disputes stemming from their editorial decisions. While Todd & Weld maintains that all their previously invoiced work was approved as “exceptional” by Newsmax’s general counsel, the treatment of their final invoices indicates deeper challenges in the company.
As this legal matter progresses, the outcome may set a precedent for how media companies address legal liabilities resulting from their reporting, particularly in an age where misinformation can have far-reaching consequences. For now, Todd & Weld waits for the court's next hearing, hoping to settle what was once a fruitful partnership turned sour.
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