Former US President Donald Trump is suing co-founders of the social media platform Truth Social. He is accusing them of mismanaging the platform earlier and has said they should lose stock in the company. IPO of Truth Social went public on March 26.
Trump Media & Technology Group Corp. filed the papers in the Florida state court last week against executives Wes Moss and Andy Litinsky. Moss and Litinsky were contestants on Trump's NBC show "The Apprentice".
The company stated that the executives made several mistakes, which delayed the company going public. According to an AP report, less than a week after a flashy stock market debut, Donald Trump's social media company is disclosing that it lost nearly $58.2 million in 2023.
Losses in 2023 for Trump Media & Technology Group whose flagship product is Truth Social mark a stark decline compared with the profit of $450.5 million that the former president's company reported for 2022, according to a regulatory filing Monday.
Moss and Litinsky pitched to Trump, the idea of starting Truth Social, a new social media platform, after Trump was banned from the social media platform X, which was then known as Twitter, following riots at Capitol Hill in January 2021.
The lawsuit said, “Without President Trump, Truth Social would have been impossible," and that the executives were "riding President Trump's coattails," an NBC report reads.
According to a Bloomberg report, the pair failed at both establishing corporate governance for the new company and finding a special purpose acquisition company that could take the new company public.
As per an AP report, Trump Media's shares soared in their first couple days of trading surpassing $79 at one point Tuesday but have since fallen closer to their initial offering price of $49.95. As of midday Monday, Trump Media's stock was down more than 18 per cent, standing at just over $50.
