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.
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.”
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.
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.
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.
Trump’s legal action also targets their efforts to block the company’s plans to go public, further complicating the dispute.
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.
This achievement came amidst ongoing disputes and allegations of obstruction by the co-founders, highlighting the complex journey to becoming a publicly listed entity.
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.
This legal action represents a significant effort to alter the company’s ownership and governance structure.
Continued Market Volatility for TMTG Shares
Since its debut, TMTG’s shares have experienced significant fluctuations, illustrating the uncertain market sentiment surrounding the company.
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.
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.
The resolution of this waiting period could have significant implications for his financial strategy and the company’s future.
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.
These legal battles are costly, with daily expenses reported to be around $230,000 in February, demonstrating the financial and legal pressures he faces.
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.
These challenges highlight the significant financial stakes involved in his ongoing legal and business disputes.
