Truth Social Co-Founders Sue Trump Media Over Share Dilution Ahead of DWAC Merger
The lawsuit alleges former President Trump attempted to dilute co-founders' shares, potentially affecting a $4 billion merger deal.
- Truth Social co-founders, Andy Litinsky and Wes Moss, file a lawsuit in Delaware claiming their stake in Trump Media & Technology Group was reduced from 8.6% to less than 1%.
- The dispute arises as Trump Media eyes a merger with Digital World Acquisition Corp, estimated to be worth up to $4 billion.
- The lawsuit could pose a significant setback to the merger, which is seen as a financial lifeline for Trump, who faces over $500 million in legal judgments.
- Co-founders allege they were deprived of their rightful share despite creating Truth Social, accusing Trump of not wanting to pay.
- The lawsuit seeks injunctive relief against the dilution effort, with a court motion detailing the attempt to drastically dilute the co-founders' interests.