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Tech billionaire Reid Hoffman has made a multimillion-dollar investment in voting company Smartmatic. 

Why it matters: The funds help support the tech company's defamation lawsuits against Fox News and Newsmax.

Catch up quick: Smartmatic filed several lawsuits against conservative-leaning networks and hosts for peddling disinformation against its technology's use in the 2020 U.S. presidential election. 

In February 2021, Smartmatic filed a $2.7 billion defamation lawsuit against Fox News. In November 2021, it filed separate defamation lawsuits against Newsmax and One America News Network, the latter of which it settled in April.

What they're saying: A Smartmatic spokesperson confirmed the investment to Axios.

"Not only is Smartmatic a great investment in terms of financial returns, this was a way to provide capital that would allow the truth to be found in the courts," Dmitri Mehlhorn, an adviser to Hoffman, told the Washington Post, which first reported the investment. "This is a company that is a great company with a great CEO, and this case is a great case."

"The lies told by Fox News and Newsmax have not only defamed and damaged our business, but they have also directly attacked the integrity of the nonpartisan civic work we have supported for more than two decades," Smartmatic CEO Antonio Mugica said in a statement. 

"Smartmatic built a global business by using technology to better engage citizens, regardless of party or ideology, by making voting simple and trustworthy. ... I am thrilled to support [Mugica] in building this firm while also recovering what he is owed," Hoffman said. 

What to watch: A trial date for Smartmatic's case against Fox News, filed in the New York State Supreme Court, has not been set. In June, Smartmatic subpoenaed four Fox Corporation board members. 

In a statement to Axios, a Fox News spokesperson alleged Hoffman's investment could be politically motivated. (Last year, Hoffman donated $2 million to a pro-Biden super PAC in New Hampshire.)

"As a report prepared by our financial expert shows, Smartmatic's damages claims against FOX News are highly implausible, disconnected from reality and on their face intended to chill First Amendment freedoms, so their alliance with a high profile Democratic donor and longtime supporter of President Biden to fund their lawsuit is entirely predictable. We remain ready to defend this case surrounding extremely newsworthy events when it goes to trial next year," the spokesperson said.

Newsmax filed to dismiss the Smartmatic lawsuit last month, alleging the suit is "meritless" and threatens First Amendment press freedoms. The case is expected to go to trial in the Delaware State Superior Court this fall.

A Newsmax spokesperson told Axios, "Newsmax reported fairly on both sides of the 2020 election. We trust other media will continue to report on the Department of Justice's proceedings concerning Smartmatic allegedly bribing a Philippine official $4 million for election contracts there."

Editor's note: This story was updated with comment from Smartmatic and Hoffman.

Reid Hoffman invests in Smartmatic to fund defamation lawsuits

The voting tech company sued Fox News and Newsmax.

Reid Hoffman holding a microphone in a sweater over a button down sitting in a chair in front of a curtain

Reid Hoffman. Photo: Kimberly White/Getty Images for WIRED

Reid Hoffman

Tech billionaire <a class="gtmContentClick" data-vars-link-text="Reid Hoffman" data-vars-click-url="https://www.axios.com/2018/12/23/reid-hoffman-future-linkedin-investing" data-vars-content-id="36d08671-feae-4593-bc9e-30a760a1b284" data-vars-headline="Reid Hoffman invests in Smartmatic to fund defamation lawsuits" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2018/12/23/reid-hoffman-future-linkedin-investing" target="_self">Reid Hoffman</a> has made a multimillion-dollar investment in voting company Smartmatic. Why it matters: The funds help support the tech company&#x27;s defamation lawsuits against <a class="gtmContentClick" data-vars-link-text="Fox News" data-vars-click-url="https://www.axios.com/2021/02/04/smartmatic-lawsuit-fox-giuliani-powell" data-vars-content-id="36d08671-feae-4593-bc9e-30a760a1b284" data-vars-headline="Reid Hoffman invests in Smartmatic to fund defamation lawsuits" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2021/02/04/smartmatic-lawsuit-fox-giuliani-powell" target="_self">Fox News</a> and <a class="gtmContentClick" data-vars-link-text="Newsmax" data-vars-click-url="https://www.axios.com/2021/11/04/smartmatic-newsmax-oann-defamation-lawsuit" data-vars-content-id="36d08671-feae-4593-bc9e-30a760a1b284" data-vars-headline="Reid Hoffman invests in Smartmatic to fund defamation lawsuits" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2021/11/04/smartmatic-newsmax-oann-defamation-lawsuit" target="_self">Newsmax</a>.

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Reid Hoffman invests in Smartmatic to fund defamation lawsuits

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