Two co-founders of Trump Media are facing legal action from former president Donald Trump, who is claiming that they mismanaged his social media enterprise and wants their shares taken away. The legal team representing Trump has claimed that 8.6% of Trump Media’s ownership, Wes Moss and Andy Litinsky, were incompetent and made bad decisions that hurt the company.
The conflict began after the Capitol brawl, which prompted Trump to block the person from Twitter. Trump, who wanted to find a way to get around censorship on popular social media platforms, struck a deal with Moss and Litinsky, who had pitched Truth Social as an alternative platform.
Still, things got hotter when Trump’s attorneys claimed that Truth Social’s parent business, Trump Media & Technology Group (TMTG), suffered greatly because Moss and Litinsky were negligent in their managerial responsibilities. Their actions allegedly slowed down the crucial process of going public for Trump Media, which was ultimately accomplished through a merger with a special purpose acquisition company (SPAC).
Moss and Litinsky were accused by Trump in his lawsuit of hindering the merger process by not finding a suitable partner, which caused the company’s public debut to be delayed. In addition, they argue that the executives’ behaviour harmed TMTG’s financial prospects by causing the stock price to fall.
Neither Moss nor Litinsky have issued a statement in regard to the case. Nevertheless, in an earlier lawsuit that was submitted in February, they asserted that Trump sought to diminish their ownership interest by elevating the overall number of shares in the corporation. They felt their power within Trump Media would be diminished if this change was made.
This drama highlights the turbulent journey that Trump has taken as a social media business, one that has been fraught with regulatory scrutiny and unpredictable stock price swings. Truth Social is still dealing with problems like government inquiries and operational roadblocks, even though its share price spiked at first after Trump Media went public.
Trump and his former cronies stand to gain or lose greatly depending on the outcome of the ongoing court struggle, which is threatening to derail Truth Social’s plans.
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