Trump Media & Technology Group Sues Co-Founders to Remove Their Shares

Trump Media & Technology Group, the owner of Truth Social led by former President Donald Trump, has filed a lawsuit against two co-founders in an effort to remove their ownership in the company. This legal action is the most recent development in the ongoing legal battle to take Trump Media and Truth Social public, a move that has significantly increased Trump's wealth and caused excitement in the financial world.

Trump Media has taken legal action by filing a lawsuit in Florida state court on March 24 against Andy Litinsky and Wes Moss, who are both co-founders of the company. The lawsuit claims that their actions in setting up the company led to significant damage due to a series of "reckless and wasteful decisions."

According to the lawsuit, Litinsky and Moss are accused of failing at every step, resulting in detrimental consequences for Trump Media.

CNN has contacted the lawyers representing United Atlantic Ventures, the company that Litinsky and Moss are affiliated with, for their response.

The lawsuit, which was initially reported by Bloomberg News, is seeking to compel Litinsky and Moss to give back their ownership share in the company.

Litinsky and Moss were supposed to get 8.6 million shares in the new company through United Atlantic Ventures. Based on Tuesday's closing price of $51.60, their stake is valued at around $444 million.

They had also filed a lawsuit in Delaware against Trump, claiming that the former president intended to reduce their ownership in the new company.

Trump recently became the owner of 78.8 million shares in Trump Media, a company that just went public last week. This stake is currently worth approximately $4.1 billion, showing an increase of $228 million from the closing price on Monday. This information was also reported by CNN’s Ramishah Maruf.

Editor's P/S:

The ongoing legal battle surrounding Trump Media & Technology Group highlights the complexities and high stakes involved in the business world. Trump's lawsuit against his former co-founders raises questions about corporate governance, accountability, and the pursuit of personal wealth. The financial implications of the lawsuit are substantial, with Litinsky and Moss's ownership stake potentially worth hundreds of millions of dollars.

The article also underscores the challenges faced by companies seeking to go public. The process can be fraught with legal battles, accusations of mismanagement, and intense scrutiny from investors. The financial rewards can be significant, but they come with a high degree of risk and potential liability. As the legal battle between Trump Media and its former co-founders continues, it will be interesting to see how the courts resolve the competing claims and determine the fate of the company's ownership and valuation.