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Trump is suing the co-founders of Truth Social Company in an attempt to expel them

(Bloomberg) — Donald Trump has named two co-founders of his newly public Trump Media & Technology Group Corp. sued, claiming they improperly incorporated the company and should not acquire shares in it.

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In the latest legal battle over who gets how much of the hot but struggling meme stock, Trump claims that Andy Litinsky and Wes Moss violated a building agreement and their 8.6% stake, currently at Estimated to have not earned $606 million.

The lawsuit, filed March 24 in Florida state court and not previously reported, comes after the couple filed their own lawsuit against the former president in Delaware Chancery Court over their promised involvement in the social media company had submitted.

The litigation comes amid wild swings in Trump Media’s shares, which began trading last week after merging with a special purpose acquisition company, a so-called SPAC. The stock fell 21% on Monday after Trump Media disclosed in a securities filing a $58 million loss and a relatively small decline in revenue for 2023 and warned again that the company needed the money from the SPAC deal to meet the to maintain operations.

The stock rose 6.1% to $51.63 as of 3:53 p.m. in New York on Tuesday.

Trump claims Litinsky and Moss failed to properly establish Trump Media’s corporate governance structure, launch its Truth Social platform and find a suitable merger partner. This failure damaged the company, he argues. He says they then made “incessant attempts to thwart the blank check deal” in the fight for their respective shares. In their own lawsuit, the two say Trump planned to seek millions of additional shares, diluting their stake.

Lawyers for Litinsky and Moss did not respond to emails seeking comment on Trump’s lawsuit.

Read more: Trump’s net worth falls by $1 billion as social media company goes under

Trump, the presumptive Republican nominee for November’s presidential election, has seen his net worth soar due to his stake in Trump Media, which he could ultimately use to pay off hundreds of millions of dollars in court judgments – although he is currently unable to do so for sale Due to a blocking period, these shares are not blocked for six months. Despite the drop, Trump Media currently has a market cap of $7.05 billion, and the bigger his stake, the more money he could get. If the stock price skyrocketed, its payout would fall.

According to filings with the U.S. Securities and Exchange Commission, Trump owns 57% of the company, with his stake now worth $4.02 billion on paper.

Read more: Keeping up with the Trump trials

Delaware Judge Sam Glasscock III declined to expedite Litinsky and Moss’ lawsuit after Trump’s lawyers agreed to avoid a reduction in the value of their shares. But at a hearing on Monday, the pair told the judge that they plan to seek an order barring the lawsuit from proceeding in Florida while pushing claims that Trump aimed to target their holdings from the start .

The judge said he was “stunned” to learn of Trump’s Florida lawsuit – which he filed instead of filing countersuits against the two in Glasscock’s own courtroom – and he was considering possible sanctions against the former president in the Delaware case.

The Florida case is Trump Media & Technology Group v. United Atlantic Ventures, Florida Circuit Court, 12th Judicial Circuit (Sarasota).

– With assistance from Bailey Lipschultz.

(Adds the current value of the share held by Litinsky and Moss in the second paragraph and the stock action in the fifth.)

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