Former president Donald Trump filed a lawsuit against the company’s co-founders Truth Socialclaimed that they mismanaged the social media platform early on and therefore had to lose their shares in the company, which recently went public.
In filings filed in Florida state court last week, Trump Media & Technology Group Corp. alleged that executives Wes Moss and Andy Litinsky made a series of costly mistakes that led to the company’s long delay in going public, and a judge urged them to strip. from their shares in the company.
The pair, who were contestants on Trump’s NBC show The Apprentice, pitched the idea for Truth Social to the former president after he was banned from the network, then known as Twitter, after the Jan. 6 attack on the Capitol.
“This was a phenomenal opportunity for Moss and Litinsky,” the suit says, adding that they are both “riding on President Trump’s coattails.”
“Truth Social would not be possible without President Trump,” the filing said.
He was the first to make the claim Bloomberg, said Moss and Litinsky were tasked with establishing corporate governance for the new company and finding a special-purpose buyout firm that could take the new company public and provide it with cash. He claimed that they failed in both tasks.
The lawsuit was filed on March 24 after the shareholders entered Digital World Acquisition Corp. voted to merge with Trump Media and Technology Group, now called Trump Media. The former president is the majority shareholder.
An attorney for Moss and Litinsky’s company, United Atlantic Ventures, did not immediately respond to a request for comment Tuesday.
The filing also comes after Moss and Litinsky sued Trump’s company in Delaware Court of Chancery in February, alleging that he tried to dilute their stake in the company by increasing the total number of authorized shares in the company from 120 million to 1 billion.
Trump Media sharing has begun trade On March 26, and at one point the stock price crossed $79. There is this since fallen, closing at $51.60 on Tuesday. This reduction occurred after the company reported a net loss $58.2 million It earned $4.1 million in 2023.