Former President Donald Trump has filed a lawsuit against the co-founders of Truth Social, claiming that Wes Moss and Andy Litinsky mismanaged the social media platform early on and should lose their stock in the company. The lawsuit alleges that Moss and Litinsky made costly mistakes that caused a significant delay in the company going public and Trump Media & Technology Group Corp. is seeking to strip them of their shares in the company. The pair, who were contestants on Trump’s show “The Apprentice,” pitched the idea of Truth Social to Trump after he was banned from Twitter following the Jan. 6 attack on the Capitol.
The lawsuit argues that Truth Social would not have been possible without President Trump’s involvement and accuses Moss and Litinsky of failing to establish corporate governance for the new company and finding a special purpose acquisition company to take the company public. It claims that the executives did not fulfill their tasks and as a result, caused significant delays and mismanagement. The suit was filed after shareholders in Digital World Acquisition Corp. voted to merge with Trump Media & Technology Group, making Trump the majority shareholder of the newly named Trump Media. Moss and Litinsky’s company, United Atlantic Ventures, has yet to respond to the lawsuit.
The lawsuit from Trump follows a lawsuit filed by Moss and Litinsky in Delaware Chancery Court in February, alleging that Trump was trying to dilute their shares by increasing the total number of authorized shares in the firm. Trump Media shares began trading on March 26 and initially saw a high stock price, but has since fallen. The stock price closed at $51.60 on Tuesday after the company reported a net loss of $58.2 million on revenue of $4.1 million in 2023. The decline in stock price may be attributed to the legal disputes between the former president and the co-founders of Truth Social.
The lawsuit filed by Trump against Moss and Litinsky highlights the tensions and disputes within the company and raises questions about the management and direction of Truth Social. The legal battle between the former president and the executives of the company could impact the future success and stability of Truth Social. The accusations of mismanagement and delays in taking the company public indicate internal conflicts and challenges that may need to be resolved for the company to achieve its goals. The involvement of the courts and legal action from different parties may further complicate the situation and impact the overall performance of the social media platform.
The lawsuits and legal disputes surrounding Truth Social, Trump, Moss, and Litinsky reflect the complex relationships and challenges faced by companies in the technology and social media sectors. The allegations of mismanagement, delays, and attempts to dilute shares underscore the importance of strong governance and leadership in navigating the competitive and rapidly evolving social media landscape. The outcome of the legal battles will likely have significant implications for the future direction and success of Truth Social, as well as the reputations of the individuals involved. The lawsuits serve as a reminder of the risks and complexities associated with launching and operating a social media platform, particularly in an environment of heightened scrutiny and regulation.
