Former President Donald Trump has initiated legal action against Wes Moss and Andy Litinsky, former contestants on NBC’s “The Apprentice” and co-founders of Truth Social, a social media platform operated by Trump Media & Technology Group Corp. (TMTG).
The lawsuit, filed on March 24, 2024 in a Florida state court, alleges Moss and Litinsky’s early mismanagement led to significant delays in TMTG’s public offering and demands their shares be revoked.
Documents reveal that the lawsuit accuses Moss and Litinsky of failing to establish adequate corporate governance and secure a special purpose acquisition company (SPAC) to take businesses public, fueling TMTG with the necessary capital. Trump’s legal team argues these oversights delayed TMTG’s launch and substantially depreciated its market value.
This internal strife began after TMTG’s recent entrance into the public market, following Digital World Acquisition Corp.’s shareholder vote to merge with TMTG. Now rebranded as Trump Media, with Trump holding the majority shares, the path to this merger has been marred by legal disputes and allegations of mismanagement.
In February 2024, Moss and Litinsky filed a lawsuit in the Delaware Court of Chancery in retaliation for reducing their stake in TMTG. They accused Trump of attempting to dilute their shares by increasing the total authorized shares from 120 million to 1 billion, asserting their ownership of a combined 8.6% stake in the company, a claim protected under a 2021 agreement.
Trump Media’s shares experienced volatility after its stock market debut, peaking at over $79 but falling to $51.60. This fluctuation occurred alongside a reported net loss of $58.2 million in 2023 against a revenue of $4.1 million, raising concerns about the company’s financial stability and the platform’s user engagement, which has reportedly declined since its initial public offering.
With Trump’s shares locked up for six months, the future of his media venture hangs in the balance, especially as the company itself has hinted at challenges in continuing operations. The lawsuit’s outcome could dramatically alter the control and direction of Truth Social and Trump Media, highlighting the intricate dynamics of relationships formed in reality TV and their impact on high-profile business ventures.
