Donald Trump has launched a lawsuit against TruthSocial’s co-founders, Wesley Moss and Andrew Litinsky, alleging mismanagement and demanding they forfeit their shares in Trump Media & Technology Group (TMTG). The legal battle, filed in Florida state court, escalates a dispute that began when Moss and Litinsky, former “The Apprentice” contestants, sued Trump to prevent dilution of their 8.6% stake in the company, now valued at around $600 million.
The lawsuit claims that Moss and Litinsky’s management decisions “failed spectacularly at every turn,” leading to significant financial losses and delays in taking the company public. “Moss and Litinsky made a series of reckless and wasteful decisions at a critical time,” Trump’s legal team stated, emphasizing the negative impact on TMTG’s performance and stock price.
TMTG’s development has been marred by controversy and legal wrangling, beginning with its original buyout structure and continuing with lackluster profits and heavy losses. Despite this, shares in Truth Social surged to a high of $79 last week (they have since fallen to $48 at the time of writing this). The stock’s fluctuating price reflects broader concerns about the platform’s valuation and future, with critics pointing to its modest user base and financial losses exceeding $58 million last year.
In a statement highlighting the significance of Trump’s involvement, the lawsuit against Moss and Litinsky argues, “Without President Trump, Truth Social would have been impossible,” crediting the former president’s celebrity for the platform’s existence.
As TMTG and Truth Social move forward with the deliberations, the outcome of this lawsuit will influence the company’s governance and the distribution of its shares. With both parties firmly entrenched in their positions, the dispute not only raises questions about the management and direction of TMTG but also the future viability of Truth Social in a competitive social media landscape.
On a broader scale, the situation calls to mind the former president’s focus; faced with the significance of the 2024 presidential election, it seems as if the former president continues to pile on distractions. Every lawsuit and legal action will mean more legal bills that he will have to pay, and with his assets strained to the ultimate point, it can only mean more pressure to generate funds.
