Two co-founders of Truth Social are being sued by former President Donald Trump over allegations they mismanaged the company, according to NBC News.
The social media platform has gone public, but Trump Media & Technology Group Corp. is stating Wes Moss and Andy Litinsky made mistakes along the way which prevented Truth Social from going public earlier, Trump’s team alleges in papers filed in Florida state court March 24.
Moss and Litinsky suggested Truth Social to Trump after he was banned from Twitter, now known as X, after the Jan. 6, 2021, attack on the Capitol, according to NBC News. The two were contestants on Trump’s show “The Apprentice.”
“This was a phenomenal opportunity for Moss and Litinsky,” the suit said, adding that they were both “riding President Trump’s coattails.”
“Without President Trump, Truth Social would have been impossible,” the filing said.
Moss and Litinsky were to establish “corporate governance for the new company and find a special purpose acquisition company that could take the new company public and fuel it with cash,” NBC News reported on the lawsuit, adding they did not complete their assigned jobs.
As such, Trump’s team wants the judge to take away their shares in the company.
Truth Social went public after shareholders for Digital World Acquisition Corp. voted to merge with Trump Media & Technology Group. The company is now called Trump Media and Trump is the majority shareholder, per NBC News.
“Moss and Litinsky sued Trump’s company in Delaware Chancery Court in February, alleging that he was trying to dilute their shares by increasing the total number of authorized shares in the firm from 120 million to 1 billion,” per NBC News.
When Trump Media started on March 26, the stock price grew to more than $79. That has since waned to $51.60 on Tuesday
after the company reported a net loss of $58.2 million on revenue of $4.1 million in 2023, according to NBC News.
