Truth Social Co-Founders Sue Company, Claim Trump Tried To Dilute Shares
HuffPost
"They created Truth Social, and now the beneficiary of that, Donald Trump, doesn’t want to pay," a lawyer said as the company seeks a $4 billion merger deal.
An estimated $4 billion business merger involving former President Donald Trump’s social media company could hit a major snarl after a lawsuit was filed Wednesday accusing Trump of trying to dilute the co-founders’ shares.
Andy Litinsky and Wes Moss, who co-founded Trump’s Truth Social platform, filed a lawsuit in Delaware claiming their previously negotiated 8.6% stake in Trump Media & Technology Group (TMTG ) has been watered down to less than 1%, The Washington Post and CNBC reported.
The dispute comes as TMTG eyes a merger with the publicly traded shell company Digital World Acquisition Corp. The sale, which Digital World’s shareholders are scheduled to vote on next month, is estimated to be worth as much as $4 billion, according to The New York Times.
“The attempt here is to deprive them of the deal,” attorney Christopher J. Clark, who is representing Litinsky and Moss’ partnership, United Atlantic Ventures (UAV), in the complaint, told CNBC News. “They actually went out and did the work, they created Truth Social, and now the beneficiary of that, Donald Trump, doesn’t want to pay.”
Clark and representatives of Trump, Digital World and TMTG did not immediately respond to HuffPost’s request for comment on Thursday.
