Trump’s social media company sues co-founders, seeks to forfeit their shares

(NEW YORK) — Trump Media & Technology Group is attempting to force two of the company’s co-founders to forfeit their shares and give up any claim to the company’s leadership.

Trump’s social media company filed the lawsuit against Wesley Moss and Andrew Litinsky — co-founders and former Apprentice contestants — in a Florida court on March 24, two days after shareholders overwhelmingly voted to approve the company’s merger.

The lawsuit alleges that Moss and Litinsky “failed spectacularly” in their leadership of Trump Media, made “reckless and wasteful decisions,” and caused “significant damage” to the company.

Trump Media asked a Florida court to force the co-founders to forfeit their shares of the company, declare that the two have no right to appoint members to the company’s board, and award damages for their breach of their fiduciary duty.

“TMTG 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, and [United Atlantic Ventures] — and to halt their ongoing attempts to do even more damage,” the filing said.

Through their company United Atlantic Ventures, Moss and Litinsky sued Trump Media in February for attempting to dilute their shares in the company. A Delaware court did not expedite that lawsuit — clearing the way for Trump Media’s merger vote — but Trump Media agreed that any new shares issued would be placed into an escrow account until the resolution of the lawsuit.

According to a recent Securities and Exchange Commission filing, Moss and Litinsky’s company owns 5.5% of Trump Media — totaling 7,525,000 shares — which are currently worth approximately $388 million.

Shares in Trump Media have been on a whirlwind ride since trading began last week. Shares peaked over $79, but the company’s stock price dramatically fell by 21 percent Monday.

The company’s stock recovered slightly on Tuesday, and Trump’s stake is currently worth more than $4 billion.

Copyright © 2024, ABC Audio. All rights reserved.