Current:Home > InvestTrump Media sues former "Apprentice" contestants and Truth Social co-founders to strip them of shares-LoTradeCoin
Trump Media sues former "Apprentice" contestants and Truth Social co-founders to strip them of shares
View Date:2024-12-24 00:28:24
Former President Donald Trump's media business is suing two of its co-founders, who were also contestants on Trump's reality show "The Apprentice," alleging that they mismanaged the business and should be stripped of their shares in the newly public company.
The lawsuit was filed March 24 in Florida state court, just one day before Trump Media & Technology Group debuted on the Nasdaq stock market. Trump Media, whose main asset is the fledgling social media platform Truth Social, soared in its first two days of trading and currently has a valuation of about $6.8 billion.
The Trump Media & Technology Group lawsuit alleges that co-founders, Andy Litinsky and Wes Moss, "failed spectacularly" at setting up the business and creating an effective corporate governance structure. As part of their initial deal with Trump, the co-founders had received 8.6 million shares of Trump Media, currently valued at $432 million, which the lawsuit is seeking to claw back.
The lawsuit also blames Litinsky and Moss for Truth Social's rocky debut, claiming that they hired a "deficient" team to manage the social media platform's development and created a "toxic corporate culture."
"The Truth Social launch did not go smoothly, leading a hostile press to criticize the company for long user wait times and technical failings, to the detriment of the company's business reputation," the lawsuit claims.
Litinsky and Moss' attorney, Christopher J. Clark, declined to comment on the lawsuit.
Trump Media's filing follows a complaint filed in February in the Delaware Court of Chancery by Litinsky and Moss that seeks to prevent the former president from taking steps the two said would sharply reduce their combined 8.6% stake in Trump Media.
Trump, meanwhile, owns about 57% of Trump Media, a stake that is valued at about $4 billion — at least on paper — based on today's stock price. Trump and other top shareholders are currently under a "lock up" provision that bars them from selling shares for at least six months.
—With reporting by the Associated Press.
- In:
- Donald Trump
Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports.
TwitterveryGood! (424)
Related
- Mason Bates’ Met-bound opera ‘Kavalier & Clay’ based on Michael Chabon novel premieres in Indiana
- Anna Faris Shares Update on Her and Chris Pratt's Son Jack
- Kaspersky to shutter US operations after its software is banned by Commerce Department, citing risk
- Dow closes at record high after attempted Trump assassination fuels red wave hope
- New York nursing home operator accused of neglect settles with state for $45M
- Skip Bayless leaving FS1's 'Undisputed' later this summer, according to reports
- 'Red-blooded American' Paul Skenes makes Air Force proud at MLB All-Star Game
- Swap Sugary Drinks for a 33% Discount on Poppi Prebiotic Soda Before Amazon Prime Day 2024 Ends
- What Happened to Kevin Costner’s Yellowstone Character? John Dutton’s Fate Revealed
- Shannen Doherty remembered by 90210 and Charmed co-stars
Ranking
- Gun groups sue to overturn Maine’s new three-day waiting period to buy firearms
- Paris Hilton Shares Mom Hacks, Cookware Essentials, and Amazon Prime Day 2024 Deals You Can't Miss
- John Galt Is the Best Place to Shop It Girl Basics and They Start at Just $15
- Trump expected to announce his VP running mate today as RNC gets underway
- The Best Gifts for Men – That He Won’t Want to Return
- James Webb telescope photos show the Penguin and Egg galaxies in greater detail
- Soros’ Open Society Foundations say their restructuring is complete and pledge $400M for green jobs
- Get 35% Off the Eyelash Serum Recommended by Luann de Lesseps, Lala Kent, Paige DeSorbo & More Celebs
Recommendation
-
Mattel says it ‘deeply’ regrets misprint on ‘Wicked’ dolls packaging that links to porn site
-
Federal jury returns for third day of deliberations at bribery trial of Sen. Bob Menendez
-
Krispy Kreme unveils new Paris-inspired doughnut collection ahead of 2024 Olympics
-
Trial of Nadine Menendez, Bob Menendez's wife, postponed indefinitely
-
Congress returns to unfinished business and a new Trump era
-
King Charles III and Queen Camilla Pulled Away From Public Appearance After Security Scare
-
Natalie Portman gushes about 'Bluey' guest role, calls it her 'most important' performance
-
Video shows woman's scarily close encounter with grizzly. She says she'd still 'choose the bear.'