The lawsuit filed by Andrew Litinsky and Wesley Moss, former contestants on Donald Trump’s TV show “The Apprentice,” against Trump Media & Technology Group, the parent company of his Truth Social platform, has been slowed down by a Delaware judge. Litinsky and Moss had claimed that Trump Media planned to dilute their stake in the company as part of a merger that took it public in late March. However, the judge ruled that their concerns about their limited liability company’s 8.6% stake being diluted were no longer valid after defense attorneys assured that there would be no merger-related dilution.
Following the merger, Litinsky and Moss filed a second amended complaint claiming that Trump and other defendants imposed a “lock-up” provision preventing their company, United Atlantic Ventures (UAV), from selling its shares in the public company for six months. They argued that the case should remain on the fast track due to the potential harm caused by the six-month wait. However, the judge noted that UAV was already aware of the lock-up provision as it had been disclosed in Securities and Exchange Commission filings in February.
UAV also requested an “anti-suit injunction” to prohibit Trump Media from pursuing a Florida lawsuit against them. The Florida lawsuit alleges that due to pre-merger mismanagement by Moss and Litinsky, UAV has no right to own shares in the newly public Trump Media company. It also challenges UAV’s assertion that it has the right to appoint two directors to the Trump Media board. Trump Media’s attorneys argue that the Florida lawsuit does not violate the Delaware court order, as UAV did receive its post-merger shares. They also contend that the venue provision does not apply to Trump Media and Technology Group.
The judge expressed reluctance to expedite arguments on whether the Florida lawsuit complies with the venue provision and whether its claims should be governed by Delaware law. However, she did indicate that arguments on whether the filing of the Florida lawsuit violated the previous court order in Delaware should be resolved promptly. The case continues to unfold as Litinsky and Moss seek to protect their interests in Trump Media & Technology Group, while Trump and his legal team work to defend against the allegations brought forth by the former “Apprentice” contestants.
