Trump sues Truth Social co-founders for their stake in the company

  • 📰 dcexaminer
  • ⏱ Reading Time:
  • 67 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 30%
  • Publisher: 94%

Australia News News

Australia Australia Latest News,Australia Australia Headlines

Donald Trump is suing the co-founders of Truth Social for their stake in the company.

, filed on March 24, the day before Trump Media went public, Trump accused co-founders Andy Litinsky and Wes Moss of bungling their duties in setting up the company.

“ has been forced to file this action to remedy the harm inflicted upon it by two faithless fiduciaries and a company they own — Wesley Moss, Andrew Litinsky,After laying out what their responsibilities were supposed to be, Trump’s lawyers accused them of failing spectacularly. “Moss and Litinsky failed spectacularly at every turn,” it read. “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.”

“Only after 2022, when a new CEO and a duly constituted Board of Directors was put in place to manage the Company with due care and in good faith, was the Company able to remedy Moss’s and Litinsky’s mismanagement and place Truth Social on a solid footing,” the lawsuit continued. It also claimed that the pair retaliated after their plan for a merger was found to be inadequate, going on to try and “thwart” the merger deal. Trump’s lawyers argued that they should be held liable for damages and cede their 8.6% stake in the company, currently valued at roughly $606 million.The stock’s price slumped by roughly 20%, cutting its total value by nearly $2 billion, finishing the day at $6.5 billion. Trump’s value in the stock declined to $3.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 6. in AU
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Australia Australia Latest News, Australia Australia Headlines