Former President of the United States Donald Trump filed a lawsuit against the co-founders of his media company, Trump Media and Technology DJTclaiming they failed to fulfill their obligations, thus forfeiting their shares.
What happened: Trump took legal action against Andy Litinsky AND Wes Mossaccused of failing to meet their responsibilities in creating Trump Media’s governance structure, launching the Social Truth platform and find a suitable merger partner, as reported by Bloomberg. This, Trump claims, caused damage to the company.
The lawsuit, filed March 24 in a Florida state court, claims that Litinsky and Moss should not receive their 8.6% stake in the company.
Trump claimed that the two “began relentless attempts to thwart” the SPAC merger in the interest of their shares.
The legal battle is taking place amid significant fluctuations in Trump Media’s shares, which fell 21% after the company revealed a $58 million loss and minimal revenue for 2023.
See also: Trump vs. Biden: Which candidate is losing ground?
Despite this, Trump’s net worth has reportedly increased due to his stake in Trump Media, which he could potentially use to resolve legal judgments against him. The company’s market capitalization currently stands at $7.13 billion, with Trump owning 57% of the company, valued at $4.06 billion.
Because matter: Trump’s media company has been under intense scrutiny since its IPO. The company’s financial stability has been called into question after an auditor raised questions about its profitability. The company’s shares also took a hit after it revealed significant losses for the previous year, leading to a drop in Trump’s net worth of more than $1 billion.
Despite its IPO, Trump’s media company has faced challenges in the market, with the stock struggling. The ongoing legal battle between Trump and his cofounders adds another layer of complexity to the company’s already turbulent journey.
Price Action: Trump Media & Technology Group shares closed just over 6% at $51.60 in the regular session on Tuesday. Shares were largely stable in after-hours trading.
Read next: Trump vs. Biden: New poll reveals former president ahead, but one trend could give his camp sleepless nights
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