Why Newsmax Stock Is Crashing Today
Shares of Newsmax Media (NYSE: NMAX) are plunging on Thursday. The media company's stock lost 23.5% as of 1:40 p.m. ET and was down as much as 24.5% earlier in the day. The steep decline comes as the S 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) both lost more than 5%.
A Delaware judge ruled that the company made defamatory statements about Dominion Voting Systems, sending the case to trial.
Newsmax suffered a significant setback in a major lawsuit on Wednesday. Judge Eric M. Davis of the Delaware Superior Court ruled that the cable news channel had made defamatory statements about Dominion Voting Systems when it falsely claimed the company rigged votes in the 2020 presidential election. The judge stated that Dominion presented "clear and convincing evidence" that Newsmax's statements were false and would "likely cause reasonable viewers to think significantly less favorably about Dominion than if the viewers knew the truth."
Source Fool.com
