It has been noted that former President Donald Trump recently initiated a legal battle against two co-founders of the Trump Media & Technology Group Corp. The company is the parent of the social media platform Truth Social which recently went public via Trending Politics News.
The lawsuit that was filed on March 24 in Florida state court, alleged that Andy Litinsky and Wes Moss, the co-founders in question, improperly set up the company thereby disqualifying themselves from owning any stock.
Trump’s legal team argued that Litinsky and Moss violated the agreed terms during the company’s formation and, as a result, do not deserve to hold their 8.6% stake, valued at a whopping $606 million as per Bloomberg Law.
The legal confrontation is not a one-sided affair, however. Litinsky and Moss had previously brought a lawsuit against Trump in the Delaware Chancery Court, claiming they were promised a stake in the social media company which they have yet to receive.
It is noted that adding to the drama is the volatile performance of Trump Media’s stock. After merging with a special purpose acquisition company (SPAC), the stock has experienced wild fluctuations. A recent securities filing disclosed a concerning $58 million loss for the company in 2023, along with a “relative trickle of revenue.”
The financial report, paired with a warning about the necessity of SPAC deal funds for continued operation, led to a 21% drop in stock value. However, the stock price saw a partial recovery the following day, up 6.1% in late trading in New York.
