Former President Donald Trump sued two co-founders of his Truth Social platform over what he believes were improper actions setting up the parent company.
Trump Media & Technology Group recently went public and is the parent company for the popular Truth Social app. The 45th president argued in the filing that co-founders Andy Litinsky and Wes Moss did not set up the company correctly.
The suit was filed the day before Trump Media went public on NASDAQ.
His action followed a February complaint by the two alleging that Trump was taking steps to drastically decrease their holdings. Litinsky and Moss currently have a combined 8.6% stake in Trump Media.
According to the suit, the company “has been forced to file this action to remedy the harm inflicted upon it by two faithless fiduciaries and a company they own…and to halt their ongoing attempts to do even more damage.”
The filing enumerated the responsibilities of the two before accusing them of stumbling in their roles.
Donald Trump on Truth Social: pic.twitter.com/ahHhvQX5Lc
— Benny Johnson (@bennyjohnson) March 29, 2024
It specifically cited the defendants for failing “to get the corporate governance established. They allegedly made a series of reckless and wasteful decisions at a critical time that caused significant damage to TMTG and a decline in the stock price of its merger partner.
The lawsuit further declared that it took until 2022 and the naming of a new CEO and Board of Directors to right the ship. These actions, it asserted, were finally “able to remedy Moss’s and Litinsky’s mismanagement and place Truth Social on a solid footing.”
Both of the defendants in the lawsuit were previously contestants on Trump’s reality show “The Apprentice.”
The filing alleged Litinsky and Moss bungled a previous effort to take Trump Media public several years earlier, delaying the project for a year and a half. It claimed the two co-founders attempted to retaliate against the Truth Social merger when their plan was found to be inadequate.
The Delaware suit against Trump is just one of several attempts cited in the former president’s legal action by the pair to prevent Trump Media from going public. That goal was achieved when the company merged with Digital World Acquisition last month.
