According to a report by NBC News, former US President Donald Trump has sued the co-founders of Truth Social, alleging that they should forfeit their shares in the newly public company due to their mismanagement of the social media platform. The IPO of Truth Social took place on March 26, while the lawsuit was filed on March 24. Trump Media & Technology Group Corp. has requested a judge to strip executives Andy Litinsky and Wes Moss of their company shares, claiming that their costly mistakes led to delays in the company’s IPO. The arguments were presented in court papers filed last week in a Florida state court. The former President has accused both Litinsky and Moss of violating the agreement regarding the establishment of Truth Social and claimed that they do not deserve their 8.6% stake, currently valued at $606 million, as reported by Bloomberg.
“Without President Trump, Truth Social would have been impossible”
Litinsky and Moss, who both appeared on Trump’s NBC show “The Apprentice,” approached him with the idea for Truth Social after he was banned from Twitter following the Capitol attack on January 6, 2021. The lawsuit stated that this opportunity “turned out to be a phenomenal opportunity for Moss and Litinsky” and that they were “riding President Trump’s coattails.” It further stated, “Without President Trump, Truth Social would have been impossible.” The lawsuit alleges that Litinsky and Moss were tasked with establishing the new business’s corporate governance and finding a special-purpose acquisition firm that could facilitate its public offering and fundraising. However, according to the lawsuit, they were unsuccessful in both endeavors. In February, Litinsky and Moss filed a lawsuit against Donald Trump’s business in Delaware Chancery Court, alleging that he was seeking to diminish the value of their shares by increasing the company’s total authorized shares from 120 million to 1 billion.