Trump Sues Co-Founders Over $606M Stake: Explosive Legal Drama Unfolds!

In the latest legal showdown surrounding the ownership structure of Trump Media & Technology Group Corp., former President Donald Trump has filed a lawsuit against two of the company’s co-founders, Andy Litinsky and Wes Moss. Trump contends that Litinsky and Moss breached agreements regarding the company’s establishment and should not be entitled to their current 8.6% stake, valued at $606 million.

Dispute over Ownership Stake

Trump’s legal action comes amidst a backdrop of volatility in the value of Trump Media, which recently went public through a merger with a special purpose acquisition company (SPAC). Following the merger, Trump Media’s stock witnessed significant fluctuations, including a 21% drop after the company reported a $58 million loss and modest revenue for 2023. Despite these challenges, Trump Media’s stock saw a 6.1% increase to $51.63 on Tuesday.

Allegations Against Litinsky and Moss

In his lawsuit, Trump alleges that Litinsky and Moss failed to establish appropriate corporate governance structures, properly launch the Truth Social platform, and identify a suitable merger partner for Trump Media. Trump asserts that these failures have negatively impacted the company. Furthermore, he accuses Litinsky and Moss of attempting to obstruct the SPAC deal to protect their own interests.

Legal Maneuvering

Litinsky and Moss had previously filed a lawsuit against Trump in Delaware Chancery Court, claiming that Trump intended to dilute their stake by seeking additional shares. However, Trump’s lawyers have agreed not to diminish the value of Litinsky and Moss’s shares, leading to a decision by the Delaware judge, Sam Glasscock III, to refrain from expediting Litinsky and Moss’s lawsuit.

Florida Lawsuit and Potential Sanctions

Meanwhile, Trump’s decision to file a separate lawsuit in Florida has raised eyebrows, with Judge Glasscock expressing surprise and hinting at potential sanctions against the former president in the Delaware case. Litinsky and Moss intend to seek an order to halt the Florida suit while they address allegations that Trump had always intended to target their stake.

Conclusion

The legal battle between Donald Trump and the co-founders of Trump Media & Technology Group underscores the complexities surrounding ownership disputes in the corporate world. As the litigation unfolds, the outcome will not only impact the involved parties but also attract significant attention within the business and legal communities.

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