April 18, 2024

TechNewsInsight

Technology/Tech News – Get all the latest news on Technology, Gadgets with reviews, prices, features, highlights and specificatio

Trump is suing the founders of Truth Social, seeking to wipe out their shares

Trump is suing the founders of Truth Social, seeking to wipe out their shares

Donald Trump has sued two of his co-founders at Truth Social, his favorite social media platform, for tantrums and meltdowns, in a move to seize their stake in the company, which went public in late March.

Trump Media and Technology Group (TMTG), the parent company of Truth Social, filed a lawsuit in Florida state court against the Apprentice Star Andy Letinsky and Wes Moss on March 24, which was first reported by Bloomberg Tuesday, accusing them of making “a series of reckless and wasteful decisions at a critical time” that caused “significant damage” to the company and “a decline in the share prices of its merger.”

The lawsuit alleges that Letinsky and Moss “failed spectacularly” to manage day-to-day operations, including failing to create Trump Media's corporate governance structure, launch the Truth Social platform, and find a publicly traded merger partner. The lawsuit says Letinsky and Moss — who were to receive 8.6 million shares in the new company, through United Atlantic Ventures — should be divested of their stake.

The filing comes on the heels of a lawsuit filed by the co-founders against Trump in Delaware, which claims TMTG was trying to… Dilute their shares.

Although Truth Social shares rose after it went public last week following TMTG's merger with blank-check financing partner Digital World Acquisition Corp on Monday, TMGT stock prices fell after the company's financials became public.

Common

According to To filings Filed with the US Securities and Exchange Commission, the social media company reported a net loss of $58,189,200 in 2023, along with a loss of more than $50 million in 2022. The company generated only about $5.4 million in gross profits during the two-year period.

See also  US agency opens investigation into fatal Tesla car crash that killed three

Although Trump will not be allowed to sell his shares in the company for at least six months, Truth Social's valuation could become a crucial financial lifeline in his fight to pay off a mountain of legal expenses stemming from a slew of civil and criminal court appearances. cases.