Former President Donald Trump recently filed a lawsuit against the co-founders of Truth Social’s parent company, Trump Media, for their stake in the company.
YOUR REACTION: Former President Donald Trump has filed a lawsuit against the co-founders of Truth Social, accusing them of mismanagement that led to delays in the platform's public launch. Trump Media & Technology Group Corp. alleges that Wes Moss and Andy Litinsky's errors… pic.twitter.com/yO7idPNnUI
— Simon Ateba (@simonateba) April 3, 2024
On March 24, 2024, the former president filed the lawsuit, accusing co-founders Andy Litinsky and Wes Moss of failing to carry out their duties while setting up the company.
“[Trump Media and Technology Group Corp] has been forced to file this action to remedy the harm inflicted upon it by two faithless fiduciaries and a company they own — Wesly Moss, Andrew Litinsky, and [United Atlantic Ventures LLC] — and to halt their ongoing attempts to do even more damage,” the lawsuit states.
After disclosing the responsibilities that the co-founders were expected to carry out, Trump’s lawyers accused the pair of failing “spectacularly.”
“Moss and Litinsky failed spectacularly at every turn,” the lawyers wrote. “They failed to get the corporate governance established. They made a series of reckless and wasteful decisions at a critical time that caused significant damage to TMTG and a decline in the stock price of its merger partner.”
“Only after 2022, when a new CEO and a duly constituted Board of Directors was put in place to manage the Company with due care and in good faith, was the Company able to remedy Moss’s and Litinsky’s management and place Truth Social on a solid footing,” the lawsuit added.
The lawsuit continued by claiming that Moss and Litinsky retaliated after they realized that their plan for a merger was insufficient, having tried to “thwart” negotiations for the merger. As such, the former president’s lawyers argued that the pair should face consequences for damages and cede their 8.6% in the company, which is currently valued at over $600 million.
Trump Media’s stock recently dove in price after the company skyrocketed on its first trading day, drastically increasing Trump’s net worth.
The sock’s price decreased by about 20%, reducing its value by nearly $2 billion. Trump’s value in the stock fell to under $4 billion after having stood at $6 billion days before. The figures represent a major decline from the company’s peak of $10 billion in past weeks.
