Trump Sues Truth Social Co-Founders for Alleged Wrongdoing

Trump is suing the co-founders of Truth Social, a social media platform he launched in 2021. The lawsuit alleges wrongdoing by the co-founders.

The lawsuit specifically names Devin Nunes, Mike Lindell, and Patrick Calvar, among others, as defendants. They are accused of breaching their fiduciary duties and misusing company funds.

Trump's lawsuit claims that the defendants made unauthorized changes to the platform's operations and governance structure. This allegedly caused significant financial losses to the company.

The lawsuit seeks compensatory and punitive damages, as well as other relief.

Curious to learn more? Check out: Trump Media Company Sues Brazilian Judge Investigating Bolsonaro.

Donald Trump has sued the co-founders of Truth Social, Wes Moss and Andy Litinsky, alleging they mismanaged the social media platform early on and should therefore lose their stock in the company.

The lawsuit claims Moss and Litinsky made a series of costly mistakes that resulted in a long delay in the company's going public.

The pair had pitched the idea of Truth Social to Trump after he was banned from Twitter following the Jan. 6, 2021, attack on the Capitol.

Trump owns 57% of the company, with his stake now worth $4.02 billion on paper.

Moss and Litinsky's shares are currently valued at a collective $606 million.

The lawsuit also targets the pair over their Delaware filing, arguing that it is one of several attempts they have made to block TMTG's ultimately successful plan to go public.

TMTG went public last week, enjoying a remarkable debut on the Nasdaq exchange with shares trading at a high of $78 before plunging days later.

The company's extraordinary 2023 losses came to light, leading some to warn that it is the latest example of a volatile "meme stock" offering.

Moss and Litinsky claimed they own the stake through a 2021 agreement Trump signed with their company United Atlantic Ventures.

Trump is seeking damages after accusing Moss, Litinsky, and co-defendant Patrick Orlando of "breaches of fiduciary duty".

The stock price has since fallen, closing at $51.60 on Tuesday, after the company reported a net loss of $58.2 million on revenue of $4.1 million in 2023.

You might enjoy: Did Truth Social Go Public

Trump's net worth surged and tumbled along with TMTG's share price, which ultimately slumped and sent the presumptive Republican nominee's fortune spiraling 14%, to $6.4 billion, according to the Bloomberg Billionaire's Index.

Trump's lawsuit is just the latest in his court battle with Moss and Litinsky, who were credited for pitching the idea of a copycat Twitter platform called Truth Social in early 2021.

The pair had agreed to a deal in which Trump would own 90% of the platform when it was a private company.

They later sued Trump in Delaware Chancery Court over their promised stake in the social media company.

Worth a look: Donald Trump's Truth Social Starts Trading on Tuesday.

Donald Trump has sued the co-founders of Truth Social, Wes Moss and Andy Litinsky, alleging they mismanaged the social media platform early on.

They had pitched the idea of Truth Social to Trump after he was banned from Twitter following the Jan. 6, 2021, attack on the Capitol.

The pair were contestants on Trump's NBC show "The Apprentice" and were riding Trump's coattails with the idea.

Without Trump, Truth Social would have been impossible, according to the filing.

Moss and Litinsky were tasked with establishing corporate governance for the new company and finding a special purpose acquisition company to take the new company public and fuel it with cash.

They failed at both tasks, according to the lawsuit.

The suit was filed March 24, after shareholders in Digital World Acquisition Corp. voted to merge with Trump Media & Technology Group, now called Trump Media.

Trump is the majority shareholder.

Trump's lawyers claim the two executives made a series of costly mistakes that resulted in a long delay in the company's going public.

This caused significant damage to Trump Media & Technology Group and a decline in the stock price of its merger partner.

Moss and Litinsky had agreed to a deal in which Trump would own 90% of the platform when it was a private company.

Suggestion: Social Media Insurance

Shares in Truth Social skyrocketed after Trump Media went public, surging as high as $79.

However, the stock price has since fallen considerably.

Moss and Litinsky have already sued Trump in February, alleging he was trying to dilute their shares by increasing the total number of authorized shares in the firm from 120 million to 1 billion.

Trump Media shares started trading March 26, and the company reported a net loss of $58.2 million on revenue of $4.1 million in 2023.

The decline came after the company reported its losses and revenue.

Trump believes that Wes Moss and Andy Litinsky, the co-founders of Truth Social, are not entitled to their stock shares due to mismanagement.

Their shares are currently valued at a collective $606 million, according to Bloomberg.

Trump's lawsuit claims that Moss and Litinsky made a series of costly mistakes that resulted in a long delay in the company's going public.

The pair was tasked with establishing corporate governance for the new company and finding a special purpose acquisition company that could take the new company public and fuel it with cash, but they failed at both tasks.

Without President Trump, Truth Social would have been impossible, according to the filing.

Moss and Litinsky were riding President Trump's coattails, taking advantage of his popularity and influence to pitch the idea of Truth Social.

Trump's net worth surged and tumbled along with TMTG's share price, which ultimately slumped and sent his fortune spiraling 14% to $6.4 billion, according to the Bloomberg Billionaire's Index.

Trump owns 57% of the company, according to the filings with the US Securities and Exchange Commission obtained by Bloomberg, with his stake now worth $4.02 billion on paper.

Intriguing read: New York Times Co. V. Tasini