Lawsuit Alleges Hacking and Coup Plot at Trump Media-Linked Investment Firms

A federal civil lawsuit filed in South Florida last month has brought to light a series of shocking allegations against the board of Trump Media & Technology Group Corp. Investment firms led by the former CEO of the SPAC that merged with Donald Trump's media company have accused a current board member of orchestrating a coup and hacking their computer systems. The firms claim that board member Eric Swider and others attempted to seize control and enlarge their holdings by unlawfully accessing their information. The lawsuit, filed by Benessere Investment Group and ARC Global Investments II, seeks damages and an injunction to prohibit the use of the stolen information and to stop the defendants from hacking the firms' files.

According to the lawsuit, in early 2023, Swider plotted to oust Patrick Orlando as CEO of the special purpose acquisition company, Digital World Acquisition Corp. Following Orlando's firing in March 2023, Swider replaced him. The blank-check company completed a merger to take Trump Media & Technology Group Corp. public, allowing it to trade on the Nasdaq. However, the company's stock performance has been tumultuous, with a significant drop in share price and a loss of almost 45% of its value since April 1.

Legal Troubles and Controversy

The Florida lawsuit is just one part of a series of legal disputes that have characterized Trump Media's journey to its IPO, including settlement of fraud charges with the Securities and Exchange Commission and lawsuits between the company and its co-founders over alleged mismanagement of the merger. Critics have labeled the company a meme stock and a "scam," pointing to its reported net loss of $58.2 million on revenue of just $4.1 million in 2023.