Current:Home > FinanceTrump Media sues former "Apprentice" contestants and Truth Social co-founders to strip them of shares -Streamline Finance
Trump Media sues former "Apprentice" contestants and Truth Social co-founders to strip them of shares
View
Date:2025-04-13 00:54:46
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! (386)
Related
- Jury finds man guilty of sending 17-year-old son to rob and kill rapper PnB Rock
- Cranes arriving to start removing wreckage from deadly Baltimore bridge collapse
- What are the IRS tax brackets? What are the new federal tax brackets for 2023? Answers here
- California proposal would change how power bills are calculated, aiming to relieve summer spikes
- Paris Olympics live updates: Quincy Hall wins 400m thriller; USA women's hoops in action
- 'Bojagnles': Chain's North Carolina location adds typo to the menu
- Lawmakers seek to prop up Delaware medical marijuana industry after legalizing recreational use
- LeBron James 'proud' to announce Duquesne's hire of Dru Joyce III, his high school teammate
- Sarah J. Maas books explained: How to read 'ACOTAR,' 'Throne of Glass' in order.
- Takeaways: AP investigation reveals Black people bear disproportionate impact of police force
Ranking
- Meta donates $1 million to Trump’s inauguration fund
- 'Is it Cake?' Season 3: Cast, host, judges, release date, where to watch new episodes
- MLB Opening Day highlights: Scores, best moments from baseball's first 2024 day of action
- ASTRO COIN:Bitcoin spot ETF approval process
- Behind on your annual reading goal? Books under 200 pages to read before 2024 ends
- I screamed a little bit: Virginia woman wins $3 million with weeks-old Mega Millions ticket
- What to know about Day of Visibility, designed to show the world ‘trans joy’
- Daphne Joy, ex-girlfriend of 50 Cent, denies working for Diddy as sex worker after lawsuit
Recommendation
Behind on your annual reading goal? Books under 200 pages to read before 2024 ends
Victim Natania Reuben insists Sean 'Diddy' Combs pulled trigger in 1999 NYC nightclub shooting
No, NASA doesn't certify solar eclipse glasses. Don't trust products that claim otherwise
After 34 years, girlfriend charged in man's D.C. murder
RFK Jr. grilled again about moving to California while listing New York address on ballot petition
New Hampshire House takes on artificial intelligence in political advertising
Man in Scream-Like Mask Allegedly Killed Neighbor With Chainsaw and Knife in Pennsylvania
Tyler Stanaland Responds to Claim He Was “Unfaithful” in Brittany Snow Marriage