Trump Media Co-Founders Win Right to Challenge Share Lockup

Source: Bloomberg

April 9, 2024 at 12:54 PM EDT


Two co-founders of Donald Trump’s social-media startup won permission from a Delaware judge to add new claims to their lawsuit against the former president over the value of their shares, the latest legal fallout from a deal that took the stock public two weeks ago.

The ruling Tuesday allows Trump Media & Technology Group Corp.’s co-founders Andy Litinsky and Wes Moss to amend their suit accusing Trump of trying to dilute their stake in the company. The new complaint, which was described during a brief hearing, will allege Trump retaliated against the men by placing a so-called lockup on their shares that prevents them from selling for six months.

Litinsky and Moss, both former contestants on The Apprentice, also said they’ll seek an injunction blocking a related suit Trump filed against them in Florida, which accuses them of botching the setup for Trump Media prior to the merger. The men claim that case improperly seeks to derail the Delaware suit.

Trump Media’s merger last month with the blank-check firm Digital World Acquisition Corp. added billions of dollars — at least on paper — to Trump’s net wealth. But the company, which operates Trump’s Truth Social platform, has lost some $2.8 billion in value since then as some of the retail traders who frantically bid up the stock last month began to sell. Trump owns a nearly 60% stake. The stock is down about 44% from its closing high of $66.22 on March 27.

Read more: https://www.bloomberg.com/news/articles/2024-04-09/trump-media-co-founders-win-right-to-challenge-share-lockup?srnd=homepage-americas