Former president Donald Trump has filed a lawsuit against two key figures behind his Truth Social venture, Trump Media and Technology Group (TMTG), alleging improper establishment of the company and demanding the forfeiture of their shares. The lawsuit targets Andy Litinsky and Wes Moss, both former participants on Trump’s NBC reality show “The Apprentice,” who transitioned into roles as co-founders of TMTG.
Trump’s lawsuit, filed in Sarasota County, Florida, accuses Litinsky and Moss of mismanaging TMTG’s attempts to go public and jeopardizing the company’s future. The former president claims that Litinsky and Moss obstructed TMTG’s plans and made detrimental decisions, resulting in substantial damage to the company’s value and prospects.
This legal battle comes after Litinsky and Moss lodged a complaint in February, seeking to protect their significant stake in TMTG. They argued ownership rights based on a 2021 agreement signed with Trump’s company, United Atlantic Ventures. However, Trump’s recent legal maneuver aims to challenge their claims and assert control over the company’s direction.
The dispute underscores the volatility surrounding Truth Social, which made headlines with its recent Nasdaq debut. The company’s shares initially soared but later plummeted amid revelations of substantial losses in 2023. Some analysts caution that the company’s stock may be emblematic of “meme stocks,” characterized by erratic trading patterns divorced from underlying value.
For Trump, this legal skirmish adds to a mounting list of legal challenges. Apart from battling multiple criminal indictments and civil charges, the former president faces significant legal expenses, reportedly amounting to hundreds of thousands of dollars per day. He is reportedly considering selling his stake in TMTG, though he must wait six months to do so.
Litinsky and Moss had previously filed a complaint in February, seeking to prevent Trump from taking actions that would reduce their combined stake in TMTG. They argued ownership through a 2021 agreement signed with Trump’s company United Atlantic Ventures.
In response, Trump filed a lawsuit on March 24 in Sarasota County, Florida, alleging that Litinsky and Moss obstructed TMTG’s plans to go public and made detrimental decisions, damaging the company’s prospects.
The lawsuit also addresses Litinsky and Moss’s actions in Delaware, where they attempted to block TMTG’s public offering. Trump accuses them of breaching fiduciary duties and seeks damages while aiming to prohibit their ownership of shares or appointment to the company’s board.
Since TMTG’s recent stock market debut, its shares have experienced significant volatility, with Trump facing mounting legal expenses amidst ongoing criminal and civil cases. He is reported to be considering selling his stake in TMTG, though he must wait six months to do so.
