Donald Trump is suing two co-founders of the parent company of his Truth Social platform, saying their mistakes cost him money and they should be stripped of their shares when the company goes public.
The former US president’s lawsuit, which was filed March 24 in Florida state court, follows a complaint filed in February by those co-founders, Andy Litinsky and Wes Moss.
Their lawsuit sought to prevent Trump from taking actions that the two said would sharply reduce their combined 8.6 percent stake in Trump Media.
The couple filed their lawsuit in the Delaware Court of Chancery.
Trump’s lawsuit claims that Litinsky and Moss, both contestants on Trump’s reality show ‘The Apprentice,’ mishandled an attempt to take Trump Media public several years ago, allegedly putting the entire project ‘on ice’ for more than a year and a medium.
Donald Trump is suing two co-founders of the parent company of his Truth Social platform, saying their mistakes cost him money and they should be stripped of their shares when the company goes public.
But he also takes aim at the couple for their own Delaware lawsuit against Trump, saying it was one of several attempts they made to block Trump Media’s ultimately successful plan to go public.
Trump Media achieved that goal by merging with a publicly traded shell company called Digital World Acquisition in March.
The company’s shares have fluctuated wildly since its stock market debut. On Tuesday, shares closed at $51.60, up 6 percent, valuing the entire company at $5.9 billion.
The co-founders accused Trump Media of trying to improperly dilute their stake, while the company said they had failed to recover their shares and it wants to strip them of their ownership.
Litinsky believed he was fired from the board because he did not want to give up his equity and also claimed that Trump said “multiple times” he would “blow up the company” if his demands were not met.
Litinsky, co-founder of Trump Media & Technology Group, sent an email in March making the allegation, according to whistleblower Will Wilkerson.
Wilkerson was in charge of the company behind the Trump-themed social media platform Truth Social.
He was one of the first to start working for TMTG, but fell out with the company after filing a complaint with the Securities and Exchange Commission in August 2022, according to the Washington Post.
Trump experienced a surprising $1 billion paper loss on his Trump Media shares on Monday, after a filing revealed he lost $58 million last year.
Truth Social stock has fluctuated wildly since its stock market debut. On Tuesday, shares closed at $51.60, up 6 percent, valuing the entire company at $5.9 billion.
The former US president’s lawsuit, which was filed on March 24 in Florida state court, follows a complaint filed in February by co-founders Litinsky and Moss (pictured).
Trump’s lawsuit claims that Litinsky (pictured) and Moss, both contestants on Trump’s reality show ‘The Apprentice,’ mishandled an attempt to take Trump Media public several years ago.
Truth Social’s latest filing also included a warning from an auditor that its “operating losses raise substantial doubts about its ability to continue as a going concern.” CNBC reported.
Trump’s media company lost $58 million last year, according to a new media filing, as skeptics said the multibillion-dollar company had the hallmarks of a ‘meme’ stock.
The company earned $4.1 million in revenue by 2023, according to the new filing. This comes after Trump’s stock soared to an $8 billion valuation when he made his NASDAQ debut, even as watchdog groups warned it was a meme stock that raised ethical concerns.
The company was valued at around $7.5 billion on Monday morning following the report’s release, with share prices falling below $50 after peaking at nearly $75 last week.
Trump owns about 57 percent of the company, although he cannot sell shares for a period of six months unless the company’s board of directors, packed with Trump loyalists, votes to allow a sale.
Wes Moss joins his fellow fired cast members from the hit TV show The Apprentice as they reunite at the NBC studios in New York City.
Litinsky has long been close to Trump, seen here at his 2011 Comedy Central roast.
Others who have signed “locking” agreements include former Trump adviser Dan Scavino, former Rep. Devin Nunes, who is the company’s CEO, Donald Trump, Jr., and former Pentagon aide Kash Patel.
Board members who could greenlight sales include wrestling executive Linda McMahon, Patel and former U.S. Trade Representative Robert Lighthizer, although any move could expose them to lawsuits if they are found to be unavailable. acting in the interests of shareholders.
Trump’s still-massive bet comes as he faces continued financial pressures amid his four criminal trials.
A New York appeals court reduced his court award to $175 in his fraud trial and gave him 10 days to pay the amount, which he released this week.