“Truth Social would not have been possible without President Trump,” the complaint continued.
According to an NBC News story, former US president Donald Trump has launched a lawsuit against the co-founders of Truth Social, alleging that their mishandling of the social media network should result in them losing their shares in the freshly public company.
Truth Social’s IPO was launched on March 26; the complaint was filed on March 24. Trump Media & Technology Group Corp. asked a judge to take away the company’s shares from executives Andy Litinsky and Wes Moss, arguing that their expensive mistakes delayed the company’s initial public offering (IPO). The arguments were made in documents that a Florida state court received last week. According to Bloomberg, the former president said that both parties had broken the terms of the setup agreement and “don’t deserve their 8.6% stake, currently valued at $606 million.”
The two, who had been on Trump’s NBC show “The Apprentice,” approached him with the idea for Truth Social following his Twitter ban following the January 6, 2021, attack on the Capitol. According to the lawsuit, Moss and Litinsky were “riding President Trump’s coattails” and this ended up being “a phenomenal opportunity.” It stated, “Without President Trump, Truth Social would have been impossible.”
The lawsuit claims that the two were given the task of establishing the corporate governance of the new company and finding a special-purpose acquisition company that could assist in taking it public and raising money. According to the lawsuit, they failed both times.
Mr. Moss and Mr. Litinsky sued Donald Trump’s firm in February, alleging that he was trying to lower the value of their shares by increasing the number of authorized shares in the company from 120 million to one billion. The action was filed in Delaware Chancery Court.
