Trump Media Group (Pic Via TMTG)
In a latest development in the ongoing saga of Trump Media & Technology Group (TMTG), the company has filed a lawsuit against its co-founders, Wesley Moss and Andrew Litinsky, accusing them of mismanagement and seeking to strip them of their shares and leadership roles.
The lawsuit, filed in a Florida court on March 24, alleges that Moss and Litinsky “failed spectacularly at every turn,” including in establishing corporate governance during TMTG’s early days.
Trump blamed Moss and Litinsky for the company’s losses, claiming they made reckless decisions and failed to establish effective corporate governance.
The suit also criticized the selection of Patrick Orlando, former chief of Digital World Acquisition Corp., to take Trump Media firm public, citing opposition from several officers and directors within DWAC to a deal with TMTG.
The legal troubles extend beyond internal disputes, with Orlando facing a Securities and Exchange Commission probe over claims that he privately informed investors about a potential deal with Trump prior to the announcement of the DWAC-TMTG venture.
The investigation delayed the merger for over a year and a half, resulting in significant legal expenses for Trump Media & Technology Group.
The company’s stock has experienced significant volatility since its debut on the Nasdaq Composite Index, with shares plunging by 21% in a single day before rallying slightly.
However, concerns about mounting losses and doubts regarding the company’s long-term viability continue to weigh on investor sentiment.
The lawsuit filed by Trump is the latest development in the legal battle between the former president and Moss and Litinsky.
The co-founders had previously sued Trump in Delaware Chancery Court over their promised stake in TMTG, adding another layer of complexity to the company’s legal woes.
Despite its recent slump, Trump Media still boasts a market capitalization of approximately $6.4 billion.
However, Trump’s inability to sell any of his 57% shares due to a six-month lockup related to his New York civil fraud case adds further uncertainty to the company’s future.
As Trump Media & Technology Group grapples with internal disputes, regulatory scrutiny, and financial challenges, the road ahead remains uncertain.
The outcome of the legal battles with Moss and Litinsky, along with efforts to stabilize the company’s financial position, will be closely watched by investors and industry observers alike.
Amidst the turbulence, TMTG faces significant hurdles in regaining investor confidence and charting a path towards sustained growth and stability.
Also Read: Special Counsel Urges Rejection of Trump’s Personal Ownership Claim Over Classified Materials
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