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Saturday April 20, 2024

Trump's latest move to hurt Truth Social?

Republican candidate is suing co-founders of Trump Media and Technology Group

By Web Desk
April 03, 2024
Truth Social: Donald Trump is suing founders of his own company. — AFP/File
Truth Social: Donald Trump is suing founders of his own company. — AFP/File

Two co-founders of Trump Media and Technology Group (TMTG), the parent company of the former president’s Truth Social network, are being sued by Donald Trump.

Trump is claiming that they set up the company improperly and should lose their stock in the venture, according to The Independent.

Andy Litinsky and Wes Moss, two former contestants from NBC reality show The Apprentice are the co-founders of the company who face the lawsuit.

Enjoying a remarkable debut on the Nasdaq exchange with shares trading at a high of $78, TMTG went public last week, before plunging days later as the company’s extraordinary 2023 losses came to light.

It went on leading some to warn that it is the latest example of a volatile “meme stock” offering that has little underlying value.

Seeking to prevent Trump from taking steps, Litinsky and Moss originally filed a complaint in February in the Delaware Court of Chancery.

In addition, the two said that they would sharply reduce their combined 8.6% stake in TMGT.

Through a 2021 agreement Trump signed with their company United Atlantic Ventures, the two claimed that they own the stake.