Emphasis mine.
Trump Sues Truth Social Co-Founders For Their Stake in Company
Former President Donald Trump has sued two of his co-founders at Truth Social in an attempt to acquire their stake in the company, which went public late last month.
In a suit filed on March 24, but first reported by Bloomberg on Tuesday, Trump accused The Apprentice star Andy Litinsky and Wes Moss of failing in their duties to properly set up Truth Social, which resulted in "significant damage" to the company at "a critical time."
According to the lawsuit:
Moss and Litinsky were de facto directors of the Company also responsible for its day-to-day operations, and their charge was straightforward: establish the Company's governance structure established, launch the social media platform, and find a publicly traded merger partner so TMTG could gain access to the capital necessary to pursue its business plans. Moss and Litinsky had ample incentive to succeed: Through UAV, they received 8.6 million shares in the Company.
They would profit handsomely in any merger. Yet, Moss and Litinsky failed spectacularly at every turn. They failed to get the corporate governance established. They made a series of reckless and wasteful decisions at a critical time that caused significant damage to TMTG and a decline in the stock price of its merger partner.
The lawsuit went on to accuse Litinsky and Moss of attempting to "thwart" Truth Social's merger deal, before arguing that the two men should receive no shares in the company and should be liable for damages.
At the time of the lawsuit, Trump owned 90 million shares, or 90% of Trump Media Group. Litinsky and Moss' company United Atlantic Ventures owned 8,600,000 shares, or 8.6%, while Bradford Cohen owned 1,400,000 shares (1.4%).
Truth Social was valued at $8 billion after it went public on March 26, however, the stock quickly plummeted just days later after a filing revealed the company had lost $58 million in 2023.
Trump's net worth dropped by $1 billion following the report and the subsequent stock tank.
