Donald Trump Sues Truth Social Co-Founders Over Mismanagement Allegations

Donald Trump, the former President of the United States, has taken legal action against the co-founders of Truth Social. The lawsuit alleges mismanagement of the social media platform and calls for the revocation of their stock in the company, which recently went public. The legal dispute sheds light on the early stages of Truth Social and the involvement of the individuals responsible for its inception.

Trump Media & Technology Group Corp. filed the lawsuit in Florida state court, asserting that executives Wes Moss and Andy Litinsky made a series of costly mistakes that led to significant delays in the company's public debut. The legal action is a response to the alleged mismanagement and aims to hold the individuals accountable for their role in the setbacks faced by Truth Social.

Origin of Truth Social and Involvement of Moss and Litinsky

Moss and Litinsky, known for their participation in Trump's NBC show "The Apprentice," approached the former President with the concept of Truth Social after he was banned from Twitter in the aftermath of the January 6, 2021, Capitol riot. The lawsuit highlights their reliance on Trump's influence and describes the venture as a remarkable opportunity for them, citing their association with the former President.

The legal documentation details the responsibilities assigned to Moss and Litinsky, emphasizing their role in establishing corporate governance and securing a special purpose acquisition company for taking Truth Social public. It contends that the duo faltered in these crucial tasks, ultimately contributing to the company's delayed public offering and subsequent complications.

Legal Maneuvers and Financial Impact

The lawsuit, filed on March 24, coincided with the approval from Digital World Acquisition Corp. shareholders to merge with Trump Media & Technology Group. Notably, Trump Media shares commenced trading on March 26, experiencing significant fluctuations in value. The company reported a net loss of $58.2 million on revenue of $4.1 million in 2023, leading to a decline in the stock price.

Response and Counteraction

Following the legal challenge, an attorney representing Moss and Litinsky's company, United Atlantic Ventures, refrained from immediate comments. The lawsuit adds to the ongoing legal disputes, as Moss and Litinsky had previously sued Trump's company in Delaware Chancery Court, alleging attempts to dilute their shares through an increase in the total authorized shares.