Two Trump Media & Technology Group co-founders, Andy Litinsky and Wes Moss, who previously appeared on "The Apprentice," have alleged that the company conspired to diminish the value of their shares. Litinsky and Moss pitched the venture in 2021. The lawsuit they filed has the potential to complicate an imminent shareholder vote regarding a merger intended to make the company publicly traded.
Andy Litinsky and Wes Moss, two co-founders of former President Donald Trump's media venture, have initiated legal action, alleging that company executives, including Trump himself, conspired to strip them of potentially lucrative shares ahead of a proposed merger. Litinsky and Moss, known for their appearances on "The Apprentice," filed the lawsuit through their partnership, United Atlantic Ventures (UAV). Their complaint, detailed in documents obtained by The Washington Post, accuses company leaders of engaging in last-minute corporate tactics to dilute their ownership in the business.
Trump Media, the parent company of Truth Social, faces mounting legal challenges as Litinsky and Moss's lawsuit is the latest in a series of legal battles that could impact an imminent shareholder vote regarding a merger with Digital World Acquisition, a blank-check company.
The lawsuit sheds light on the contentious negotiations between Litinsky, Moss, and Trump in 2021, following Trump's suspension from Twitter. Under the agreement, Trump would hold a 90% stake in the venture, with UAV retaining 8.6%. However, the recent legal action alleges that company leaders, including Trump, sought to significantly increase the authorized stock from 120 million to 1 billion shares, diminishing Litinsky and Moss's ownership to less than 1% prior to the merger.
According to filings with the Securities and Exchange Commission (SEC), Trump's shares could soar to over $3 billion post-merger, based on the current stock price, while UAV's stake could be valued at nearly $300 million. This financial windfall would offer a much-needed reprieve for Trump, who faces substantial legal liabilities exceeding $450 million.
Furthermore, the lawsuit alleges that the Trump Media board intended to issue new shares to Trump, his associates, and children, further diluting Litinsky and Moss's interests. Previous reports indicated that Trump had attempted to persuade Litinsky to relinquish some shares to Melania Trump, an offer which Litinsky declined.
Litinsky and Moss departed Trump Media following disputes with company leadership but retained their shares. The protracted merger between Trump Media and Digital World Acquisition Corp has encountered numerous obstacles, including ongoing SEC investigations into potential securities violations. As the final shareholder vote approaches on March 22, the merger remains ensnared in legal complexities, casting doubt on its fruition.
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