Trump sues Truth Social co-founders, says they aren't entitled to stock shares

Former President Donald Trump is suing the co-founders of Truth Social, alleging they mismanaged the social media platform early on and should therefore lose his stock in the company, which recently went public.

In papers filed last week in Florida state court, Trump Media & Technology Group Corp. argued that executives Wes Moss and Andy Litinsky made several costly mistakes that resulted in significant delays in the company going public and asked a judge to bar them from office. Requested to remove it. His shares in the company.

The pair, who were contestants on Trump's NBC show “The Apprentice,” came up with the idea for Truth Social after it was banned on what was then known as Twitter following the January 6, 2021 attack on the Capitol. Was inspired.

“This was an unprecedented opportunity for Moss and Litinsky,” the suit states, adding that they were both “riding President Trump.”

Former President Donald Trump speaks while attending the 2024 Conservative Political Action Conference (CPAC) in National Harbor, MD, on February 24, 2024.Celal Güneş/Anadolu via Getty Images file

“Without President Trump, Truth Social would have been impossible,” the filing said.

The lawsuit, first reported by Bloomberg, says Moss and Litinsky were tasked with setting up corporate governance for the new company and finding a special purpose acquisition company that could take the new company public and fuel it with cash. Could. It claimed that they failed in both tasks.

The lawsuit was filed March 24 after Digital World Acquisition Corp. shareholders voted to merge with Trump Media & Technology Group, now called Trump Media. Trump is the majority shareholder.

An attorney for Moss and Litinsky's company, United Atlantic Ventures, did not immediately respond to a request for comment Tuesday.

Moss and Litinsky sued Trump's company in Delaware Chancery Court in February, alleging he was trying to dilute their shares by increasing the total number of shares authorized in the firm from 120 million to 1 billion.

Shares of Trump Media began trading on March 26 and at one point the stock price exceeded $79. It has declined since then and closed at $51.60 on Tuesday. The decline comes as the company reported a net loss of $58.2 million in 2023 on revenue of $4.1 million.

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