former president donald trump sued the co-founders of society of truthargued that the company should lose its shares in the recently listed company because it mismanaged its social media platform early on.
In documents filed last week in Florida state court, Trump Media and Technology Group Inc. said executives Wes Moss and Andy Litinsky made a series of costly mistakes that resulted in the company going public. They argued that there had been significant delays and urged the judge to disqualify them. their company stock.
The two, who were cast on President Trump’s NBC show “The Apprentice,” were banned from the service then known as Twitter in the wake of the Jan. 6, 2021, attack on the Capitol. He pitched the idea of Truth Social to President Trump.
“This was an extraordinary opportunity for Mr. Moss and Mr. Liczynski,” the complaint said, adding that both men were “at the mercy of President Trump.”
“Truth Social would not be possible without President Trump,” the filing says.
This lawsuit was first reported by bloombergMr. Moss and Mr. Liczynski were tasked with establishing corporate governance for the new company and finding a special acquisition vehicle that could take the new company public and raise cash, according to the company. They claimed to have failed in both missions.
The lawsuit was filed on March 24th in response to complaints from shareholders. Digital World Acquisition Corporation voted to merge with Trump Media & Technology Group, now called Trump Media. Trump is the largest shareholder.
Lawyers for Mr. Moss and Mr. Liczynski’s company, United Atlantic Ventures, did not immediately respond to requests for comment Tuesday.
In February, Moss and Liczynski filed suit in Delaware Chancery Court, accusing Trump’s company of trying to dilute its stake by increasing the number of shares it has authorized from 120 million to 1 billion. sued.
Trump Media stock has started transaction On March 26th, the stock price briefly exceeded $79.it has Since then fell, Tuesday’s closing price was $51.60. The decline came after the company reported a net loss. $58.2 million Revenue in 2023 will be $4.1 million.
This article was first published NBCNews.com
