Newsmax’s (NMAX) has filed a federal antitrust lawsuit against Fox Corporation (FOX) and Fox News, accusing the media giant of using its dominance in conservative cable news to block competition. The suit, filed Wednesday in the Southern District of Florida, seeks unspecified monetary damages and a court order to stop Fox’s alleged conduct.
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Newsmax CEO Christopher Ruddy said the lawsuit is about ensuring Americans have “real choice” in news. Fox rejected the claims, saying Newsmax is trying to “sue their way out of competitive failures.” The case sets up a high-stakes battle between the dominant Fox News and its smaller conservative rival at a time when both are still dealing with recent defamation lawsuits.
Here Are the Allegations Against Fox
The lawsuit alleges that Fox has carried out a years-long campaign to block rivals like Newsmax from securing fair distribution on major streaming and pay TV platforms. The complaint also claims that Fox coerced distributors into excluding or limiting Newsmax through restrictive contracts, financial penalties, and intimidation tactics. Newsmax says these practices slowed its growth on major platforms like Hulu, Sling, and Fubo (FUBO).
If Newsmax wins, it could weaken Fox’s control over conservative TV news and create more room for competition. The case is expected to be closely watched by TV providers, streaming platforms, and political leaders who use these channels to reach audiences.
Newsmax Is Facing Turbulent Times
The legal battle comes at a turbulent time for Newsmax, which has been working to expand its footprint since going public earlier this year. In July, it partnered with Trump Media & Technology Group’s (DJT) streaming platform, Truth+, as part of a broader effort to compete with legacy media outlets.
At the same time, Newsmax has faced its own legal setbacks, including a $67 million settlement with Dominion Voting Systems last month over defamation claims related to the 2020 election coverage.
Is NMAX Stock a Buy?
On TipRanks, NMAX stock has a Moderate Buy consensus rating based on two Buys and one Hold rating. The average Newsmax price target of $19.17 implies 38.5% upside potential from current levels. Since its IPO on March 31, 2025, NMAX stock has lost 94% of its value.
