Trump Sues Truth Social Co-Founders, Seeking to Wipe Out Their Shares

By: Georgia | Published: Apr 03, 2024

Donald Trump has filed a lawsuit against Andy Litinsky and Wes Moss, co-founders of Trump Media and Technology Group (TMTG), the parent entity of Truth Social. 

He alleges that the co-founders improperly set up the company, leading to his legal action aimed at removing their stock in the venture. 

TMTG Faces Volatile Market Debut

The public debut of TMTG on the Nasdaq exchange was marked by initial success, with shares trading at a high of $78, only to experience a sharp decline shortly after.

Advertisement
Former President Donald Trump, clad in a dark suit with a red tie and an American flag lapel pin, is clapping his hands and smiling against a dark background

Source: Wikimedia Commons

This volatility highlighted concerns around the company’s stability and raised questions about its valuation, especially in light of its significant losses reported in 2023.

Lawsuit Filed Against Former 'The Apprentice' Contestants

Donald Trump’s lawsuit targets two individuals, Andy Litinsky and Wes Moss, who previously competed on his reality TV show, “The Apprentice.”

Advertisement
On the left, a man with short blonde hair and a beaming smile wears a navy blue suit over a white shirt, positioned in front of a bar filled with various bottles. On the right, a man with dark curly hair, wearing a light blue shirt and dark tie, is posed against a plain dark background

Source: Wes Moss/Facebook, Wikimedia Commons

Now co-founders of TMTG, their legal battle with Trump has escalated, focusing on the ownership and management of the company.

Legal Dispute Over Company Ownership

Litinsky and Moss have actively sought to protect their interests in TMTG, claiming an 8.6% stake through an agreement signed with Trump in 2021.

Advertisement
The logo of Truth Social, featuring the word "TRUTH" in large, bold, navy blue capital letters directly above the word "SOCIAL" in smaller capital letters of the same color

Source: Wikimedia Commons

Their complaint, filed in the Delaware Court of Chancery in February, aims to prevent any actions by Trump that would dilute their shares.

Trump's Counterclaim in Florida

In a legal move in Sarasota County, Florida, Trump alleges that Litinsky and Moss mishandled attempts to take TMTG public.

Advertisement
Donald Trump, with light-complexioned skin and blonde hair, is captured mid-speech, gesticulating with his right hand raised. He is wearing a dark suit, white shirt, and a bright blue tie

Source: Wikimedia Commons

Not only this but he alleges that they tried to thwart the deal, causing significant delays and damage to the company. 

Allegations of Mismanagement and Obstruction

The lawsuit accuses the co-founders of failing “at every turn” and making “wasteful decisions” that have harmed TMTG’s prospects.

Profile view of Donald Trump with his characteristic blonde hair, wearing a dark suit and red tie

Source: Wikimedia Commons

Trump’s legal action also targets their efforts to block the company’s plans to go public, further complicating the dispute.

Advertisement

The Goal of Going Public Achieved Amidst Legal Battles

Despite the legal challenges, TMTG successfully merged with Digital World Acquisition, a publicly-traded shell company, allowing it to go public.

Donald Trump, featuring a subtle smile, is standing at a podium in the foreground with an American flag backdrop. Behind him, Vice President Mike Pence and Speaker of the House Paul Ryan are clapping. Pence is on the left wearing a blue tie, and Ryan is on the right, both are slightly out of focus

Source: Wikimedia Commons

This achievement came amidst ongoing disputes and allegations of obstruction by the co-founders, highlighting the complex journey to becoming a publicly listed entity.

Advertisement

Seeking Damages and Restrictive Measures

Trump is not only seeking damages for what he describes as breaches of fiduciary duty by Litinsky, Moss, and co-defendant Patrick Orlando but also aims to prevent them from owning shares or having any role in TMTG’s board.

Donald Trump, in the foreground, is walking with a focused expression, wearing a dark suit and red tie. Behind him, partially obscured, Vice President Mike Pence follows, also in a suit, carrying a binder

Source: Wikimedia Commons

This legal action represents a significant effort to alter the company’s ownership and governance structure.

Advertisement

Continued Market Volatility for TMTG Shares

Since its debut, TMTG’s shares have experienced significant fluctuations, illustrating the uncertain market sentiment surrounding the company.

Multiple electronic display boards showing financial data with various numbers, including the NASDAQ and Dow Jones indices, illuminated in blue and green digital lights

Source: Wikimedia Commons

Despite these challenges, the stock saw an increase to $51.60, valuing the company at approximately $5.9 billion, indicating a turbulent but noteworthy performance on Wall Street.

Advertisement

Trump's Anticipation to Sell Shares

Bound by a six-month waiting period before he can sell his interest in TMTG, Trump is likely looking forward to the opportunity, especially given the financial pressures from legal expenses.

Former President Donald Trump, wearing a dark suit, white shirt, and red tie, is pointing his finger while speaking at a podium

Source: Wikimedia Commons

The resolution of this waiting period could have significant implications for his financial strategy and the company’s future.

Advertisement

Trump's Broad Legal Challenges

Currently, Trump is navigating four criminal indictments and 88 felony charges across four jurisdictions, all while running for presidential office.

Donald Trump is captured mid-speech, raising his left hand, with his mouth open as if emphasizing a point

Source: Wikimedia Commons

These legal battles are costly, with daily expenses reported to be around $230,000 in February, demonstrating the financial and legal pressures he faces.

Advertisement

The Financial Impact of Legal Troubles

The legal disputes have imposed a heavy financial burden on Trump, with reported legal costs and the requirement to place bonds worth millions to appeal civil judgments in New York.

Donald Trump can be seen just having gotten out of a black car. He is wearing a blue suit, red tie and white shirt. He is doing a thumbs up sign whilst surrounded by security guards

Source: Wikimedia Commons

These challenges highlight the significant financial stakes involved in his ongoing legal and business disputes.

Advertisement