Trump Files Lawsuit Against Trump Media Co-Founders
Former U.S. President Donald Trump has filed a lawsuit against two co-founders of Trump Media & Technology Group, the company behind the Truth Social platform, alleging that they should forfeit their shares due to improper setup.
Trump's legal action, initiated on March 24 in a Florida state court, comes in response to a complaint filed by the co-founders, Andy Litinsky and Wes Moss, in February.
Litinsky and Moss sought to prevent Trump from taking actions that would significantly diminish their combined 8.6% ownership stake in Trump Media.
They lodged their complaint in the Delaware Court of Chancery.
Donald Trump sued two of his co-founders at Truth Social, his social media platform of choice for tantrums and meltdowns, in a move to take over their stake in the company
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— Rolling Stone (@RollingStone) April 3, 2024
Source: Twitter/Rolling Stone
Allegations Against Litinsky and Moss from Trump’s Lawsuit
Trump's lawsuit alleges that Litinsky and Moss, both former contestants on Trump's reality TV show "The Apprentice," mishandled a previous attempt to take Trump Media public, causing significant delays.
Additionally, the lawsuit accuses them of attempting to obstruct Trump Media's successful public offering by filing the Delaware lawsuit.
This legal action culminated in Trump Media merging with a publicly traded shell company named Digital World Acquisition in March.
Since its debut on the stock market, Trump Media's shares have experienced significant volatility. As of Tuesday, the stock closed at $51.60, marking a 6% increase and valuing the entire company at $5.9 billion.
Trump Media Shares Plunge Over 21% Following Revelation of $58 Million Loss in 2023
Less than a week after its high-profile debut on the stock market, Donald Trump's social media enterprise revealed on Monday that it incurred a loss of nearly $58.2 million in the previous year, causing its stock to plummet by over 21%.
According to a filing with securities regulators, Trump Media & Technology Group, known for its flagship product Truth Social, experienced a significant downturn in 2023 compared to the $50.5 million profit reported in 2022.
The company's revenue for 2023 amounted to $4.1 million, as indicated in the SEC filing, a notable increase from $1.5 million in 2022.
Following its merger with Digital World Acquisition Corp., a blank-check company, Trump Media commenced trading on the Nasdaq stock market under the ticker symbol DJT on March 26. However, the journey has been marked by volatility.
Although Trump Media's shares initially surged in the first few days of trading, reaching heights exceeding $79, they have since retraced closer to their initial offering price of $49.95. The stock closed at $48.66 after Monday's sell-off, resulting in considerable losses for early investors.
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