Sarasota, Florida – Former President Donald Trump is engaged in a legal battle with two co-founders of Trump Media and Technology Group (TMTG), the parent company of Truth Social, his social media network. The lawsuit alleges that the co-founders established the company improperly and should forfeit their stock in the venture.
TMTG recently went public, enjoying a strong debut on the Nasdaq exchange with shares initially trading at $78 before plummeting amid reports of substantial losses for the year 2023. This volatility in stock value has raised concerns about the true underlying worth of the company.
Trump, who is also a Republican presidential candidate, has filed a lawsuit against Andy Litinsky and Wes Moss, both former contestants on his reality show, The Apprentice. Litinsky and Moss had previously filed a complaint in Delaware Court of Chancery, aiming to prevent Trump from diminishing their combined stake in TMGT.
The lawsuit filed by Trump in Sarasota County claims that Litinski and Moss mishandled previous attempts to take TMGT public, causing significant delays. Trump accuses them of making wasteful decisions that damaged the company’s prospects.
The legal dispute extends to Litinsky and Moss’s efforts to block TMTG’s successful plan to go public by merging with a publicly-traded shell company. Trump is seeking damages for breaches of fiduciary duty and is looking to prevent Litinsky and Moss from owning shares or having any say in the company’s board.
The turbulent stock performance of TMTG continues as shares closed at $51.60, rising 6% from the previous day’s close, with the company’s overall value around $5.9 billion. Trump, facing multiple criminal indictments and felony charges, may be forced to sell his interest in TMTG sooner to cover legal expenses.
With ongoing legal battles and mounting costs, Trump’s financial situation remains strained, as he faces the challenges of his presidential campaign and legal defense simultaneously.