Former President Trump’s social media company is suing two of its co-founders, accusing them of neglecting their basic duties and delaying a recent merger with a “series of reckless and wasteful decisions.”
lawsuit Officials at Truth Social’s parent company, Trump Media & Technology Group, say Wesley Moss and Andrew Litinsky have “catastrophically failed” to establish corporate leadership for the company and are threatening plans to merge with a publicly traded company. He claims that it almost brought the project to a standstill.
The lawsuit was filed in Florida state court on March 24 and first reported on Tuesday. From Bloomberg News. Trump owns 78.75 million shares of the company, or 57.3% of Trump Media, according to the Securities and Exchange Commission. (SEC) record.
The lawsuit alleges that United Atlantic Ventures (UAV), a company run by Mr. Moss and Mr. Litinsky, and its merger with Trump Media, which was approved on March 22nd, and Digital World, which was approved on March 22nd.・Patrick Orlando, former CEO of Acquisition Corporation (DWAC), is also named as a defendant. Parent company Truth Social is scheduled to be listed on the stock market on March 26th.
Trump media accused Moss and Liczynski of harming the company through their negotiations with Orlando, spurring a 2021 SEC investigation and keeping the merger “on ice” for more than 18 months. .
Moss and Liczynski previously filed a lawsuit in Delaware accusing Trump Media of illegally diluting their stock.
The dueling lawsuits come amid a rocky start to Truth Social’s new chapter as a public company. According to an SEC disclosure filed Monday, Truth Social reported a net loss of $58 million in 2023, and its stock price has fallen from a peak of around $80 last week to $51.60 as of Tuesday’s close. It has fallen to
As of Tuesday afternoon, Trump’s shares in Truth Social were worth about $4 billion.
Copyright 2024 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
