April 19, 2024

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Trump is suing the founders of Truth Social, demanding that the “Apprentice” stars lose their shares

Trump is suing the founders of Truth Social, demanding that the “Apprentice” stars lose their shares

Donald Trump has filed a lawsuit against two co-founders of Trump Media and Technology Group (TMTG), the parent company of his Truth Social network, claiming that they improperly formed the company and should lose their shares in the venture.

TMTG went public last week, enjoying a notable debut on the Nasdaq with shares trading as high as $78 before plunging days later as the company's unusual 2023 losses emerged — prompting some to warn it was the latest example of volatility. Showcasing a “meme stock” that has little intrinsic value.

Now, the Republican presidential candidate has filed a new lawsuit against Andy Letinsky and Wes Moss, two former contestants on his NBC reality show. the Apprentice They became co-founders of the company.

Letinsky and Moss originally filed the complaint last February in a Delaware court, seeking to block Trump from taking steps that the two said would sharply reduce their combined 8.6 percent stake in TMGT.

The couple claimed they owned the stake through a 2021 agreement Trump signed with their company, United Atlantic Ventures.

On March 24, Trump filed a lawsuit in civil court in Sarasota County, Florida, alleging that the duo It “spectacularly” mishandled the attempt to make TMGT public several years ago and then attempted to “scuttle the deal,” allegedly putting the entire project “on ice” for more than a year and a half.

The Republican also accuses his aides of failing “at every turn,” making “wasteful decisions” and causing “significant damage” to TMGT's prospects.

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His lawsuit also takes aim at the couple over their filings in Delaware, arguing that it was one of several attempts they made to block TMTG's ultimately successful plan to go public. That goal was eventually achieved last month through its merger with a publicly traded shell company called Digital World Acquisition.

Trump is seeking damages after accusing Letinsky, Moss and co-defendant Patrick Orlando of “breach of fiduciary duties.” It also seeks to prevent them from owning shares or appointing any members to the company's board of directors.

Former President Donald Trump is demanding that Truth Social's founders lose their shares

(AP)

The company's shares have continued to fluctuate wildly since its debut on Wall Street last Thursday.

On Tuesday, the stock closed at $51.60, up 6 percent from Monday's results, valuing the company as a whole at about $5.9 billion.

As things stand, Trump must wait six months before selling his lucrative stake in TMTG, but he may be tempted to try to do so sooner, given the huge legal expenses he incurs.

Trump faces four criminal indictments and 88 criminal charges in four jurisdictions in conjunction with his presidential bid.

His numerous court cases reportedly cost him $230,000 a day in February. He was also recently forced to post $91.6 million and $175 million bonds in order to appeal two separate civil judgments in New York against him.