In the ongoing saga surrounding Trump Media & Technology Group, Donald Trump has taken legal action against two of the company's co-founders.
Trump aims to invalidate the stock ownership of these co-founders, alleging improper setup of their shares within the company.
Republican presidential candidate and former U.S. President Donald Trump leaves the stage at the conclusion of a campaign rally at the Forum River Center on March 09, 2024, in Rome, Georgia. (Photo: Chip Somodevilla/Getty Images)
Filing Lawsuit Against Trump Media Co-founders
In recent developments, former U.S. President Trump filed a lawsuit against Andy Litinsky and Wes Moss, co-founders of Trump Media & Technology Group, the overseeing entity of the Truth Social platform.
Trump alleges that their shares in the company were improperly established and should be revoked. The lawsuit, lodged on March 24 in a Florida state court, comes in response to a complaint filed by Litinsky and Moss in February.
In their legal action, the Associated Press reported that Litinsky and Moss sought to block Trump from taking actions that could significantly diminish their combined 8.6% ownership in Trump Media. Their lawsuit was filed separately in the Delaware Court of Chancery.
Trump's legal challenge contends that Litinsky and Moss mishandled previous efforts to make Trump Media publicly traded, causing substantial delays in the project's progression.
The lawsuit accuses the duo, both former contestants on Trump's reality television show "The Apprentice," of suspending the project for over eighteen months.
However, it also accuses the duo of their Delaware lawsuit against Donald Trump, claiming it was one of several efforts they made to obstruct Trump Media's ultimately successful strategy to go public.
Trump Media achieved this objective by merging with Digital World Acquisition, a publicly traded shell company, in March. Since its stock market launch, Trump Media shares have experienced significant fluctuations. On Tuesday, the stock concluded at $51.60, marking a 6% increase and placing the company's total value at $5.9 billion.
Litinsky and Moss's Legal Action Against Trump
The lawsuit asserted that Moss and Litinsky seized an extraordinary opportunity, leveraging President Trump's influence. It contended that without Trump's involvement, the creation of Truth Social would have been unattainable.
Litinsky and Moss, acting through their entity United Atlantic Ventures, took legal action in Delaware against Trump, asserting that the former president's actions were aimed at reducing their stake in the newly formed company.
This legal dispute adds to the complexity surrounding the ownership structure of Trump Media. In contrast, Trump's ownership in Trump Media remains substantial, with 78.8 million shares under his control following the company's recent IPO.
This significant ownership stake positions Trump as a key figure within the organization despite ongoing legal challenges. The increase in the value of his shares further underscores his influence and financial standing within the company.
