Trump Media and Technology Group stock plunges 21 per cent after announcing $58m loss in 2023
Donald Trump is suing two co-founders of Trump Media and Technology Group (TMTG), the parent company of his Truth Social network, claiming that they set up the company improperly and should lose their stock in the venture.
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 as 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 that has little underlying value.
Now, the Republican presidential candidate has filed a new lawsuit against Andy Litinsky and Wes Moss, two former contestants from his NBC reality show The Apprentice turned co-founders of the company.
Mr Litinsky and Mr Moss originally filed a complaint in February in the Delaware Court of Chancery, seeking to prevent Mr Trump from taking steps the two said would sharply reduce their combined 8.6 per cent stake in TMGT.
The pair claimed that they own the stake through a 2021 agreement Mr Trump signed with their company United Atlantic Ventures.
On 24 March, Mr Trump posted a filing in Sarasota County, Florida, civil court, claiming that the duo “spectacularly” mishandled an attempt to take TMGT public several years ago and subsequently attempted to “thwart the deal”, allegedly putting the whole project “on ice” for more than a year and a half.
The Republican further accuses his collaborators of failing “at every turn”, making “wasteful decisions” and causing “significant damage” to TMGT’s prospects.
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