Former U.S. President Donald Trump has initiated legal action against two co-founders of Trump Media, accusing them of mismanagement of his social media platform, Truth Social.
In response, the co-founders, Wes Moss and Andy Litinsky, had previously filed a lawsuit against Trump in February to safeguard their stake in the company.
The genesis of this legal tussle traces back to the aftermath of the Capitol riot in January, where Trump faced a ban from major social media platforms, prompting Moss and Litinsky to propose the creation of Truth Social. This initiative, now under scrutiny, aimed to offer an alternative to mainstream social media.
In the recent lawsuit filed on 24th March in a Florida state court, Trump's legal representatives alleged that Moss and Litinsky had failed in their duties, causing significant damage to Trump Media & Technology Group (TMTG), the parent company of Truth Social. The lawsuit contends that the co-founders' decisions resulted in a decline in TMTG's stock price and slowed down the process of taking the company public.
The legal battle intensifies as Trump's lawyers argue for the revocation of Moss and Litinsky's shares, valued at approximately $600 million. The former president founded TMTG in 2021 as a response to his banishment from major social media platforms following the Capitol riot.
The litigation unfolds amidst Truth Social's recent public debut through a merger with a special purpose acquisition company (SPAC). Despite initial market excitement, characterized by soaring stock prices, Truth Social faces regulatory scrutiny and other challenges in its merger deal, which have contributed to a subsequent decline in its stock value.
Neither Wes Moss nor Andy Litinsky were immediately available for comment regarding Trump's legal action against them. This ongoing legal saga underscores the complexities surrounding the intersection of technology, politics, and corporate governance, leaving the future of Truth Social and its stakeholders uncertain.
