April 17, 2024

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Trump is suing Truth Social's founders, claiming they should lose their shares

Trump is suing Truth Social's founders, claiming they should lose their shares

Donald Trump has filed a lawsuit against two of his co-founders of Trump Media & Technology Group Corp. (TMTG) went public, alleging that because they had improperly created the company, they were not entitled to any shares in it.

the lawsuit A lawsuit was filed late last month in Florida state court alleging that Andy Letinsky and Wes Moss — who were contestants on Trump's NBC reality TV series “The Apprentice” — violated an agreement about setting up TMTG and are not entitled to their 8.6% stake.

Their shares are currently valued at a total of $606 million, according to Bloomberg.

Donald Trump has sued two fellow co-founders of his new public company Trump Media & Technology Group Corp, Andy Letinsky and Wes Moss, claiming they made a series of costly mistakes that “caused significant damage.” Turk Mason/USA Today Network

The duo also made a series of costly mistakes that “caused TMTG significant harm and a decline in the stock price of its merger partner,” according to the lawsuit.

Following TMTG's stock market debut under the former chairman's initials “DJT,” the stock price rose to more than $70 before closing at approximately $66 per share on March 27. But so far this week, prices have fallen and the company closed at $51.60 on March 27. Tuesday.

Trump blamed Moss and Litinsky in the court filing for the company's losses, claiming they “failed spectacularly at every turn,” including when they “failed to establish corporate governance” and then “began persistent attempts to thwart” the SPAC deal in the fight to… Their shares.

“This was a great opportunity for Moss and Litinsky,” the lawsuit said, adding that they were “complying with President Trump.”

The stock fell 21% on Monday alone after TMTG disclosed in a securities filing that it had a $58 million loss in 2023 and needed money from Trump's blank check company in order to stay in business — a performance that raised doubts about its initial public offering. Her own. A launch that prompted experts to call it another “meme stock” like AMC and GameStop.

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Trump's net worth rose and fell with TMTG's stock price, which eventually fell and sent the presumptive Republican nominee's wealth rising 14%, to $6.4 billion, according to the Bloomberg Billionaires Index.

Litinsky (left) and Moss (right) were contestants on Trump's NBC reality series “The Apprentice.” The duo reportedly came up with the idea for Truth Social after Trump was banned from Twitter in the wake of the Capitol riot. WireImage

Trump owns 57% of the company, according to SEC filings obtained by Bloomberg, and his stake is now worth $4.02 billion on paper.

Trump's lawsuit is the latest in his legal battle with Moss and Litinsky, who were credited with coming up with the idea of ​​a copycat Twitter platform called Truth Social in early 2021 after Trump lost his bid for the White House and was banned from using the now-popular social media site. Like X in the wake of the Capitol riots.

Letinsky and Moss filed their own lawsuit against the former president in Delaware Chancery Court over their promised stake in the social media company.

Even with its decline, TMTG's market cap currently stands at about $6.4 billion.

Trump is unable to sell any of his 57% shares in the company due to his six-month imprisonment in connection with a civil fraud case in New York.

Letinsky and Moss filed their own lawsuit against the former president in Delaware Chancery Court over their promised stake in Truth Social. Filo Niko – Stock.adobe.com

Bloomberg reported that Delaware Judge Sam Glasscock III refused to expedite Letinsky and Moss' lawsuit after Trump's lawyers agreed to avoid devaluing their shares.

But at a hearing Monday, the couple told the judge they plan to seek an order preventing Trump's subsequent lawsuit in Florida from moving forward while they litigate over allegations that Trump planned to target their share all along.

Glasscock told the court he was “shocked” to learn of Trump's lawsuit in Florida, which he filed instead of filing counterclaims against the two in Glasscock's own courtroom, according to Bloomberg. As a result, he is considering possible sanctions against the former president in the Delaware case.

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The Post requested comment from Trump, Litinsky and Moss.