Trump Media sues Truth Social co-founders to strip them of shares

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What to cognize astir Trump Media's Nasdaq debut

What to cognize astir Trump Media's banal marketplace debut 04:03

Former President Donald Trump's media business is suing 2 of its co-founders, who were besides contestants connected Trump's reality show "The Apprentice," alleging that they mismanaged nan business and should beryllium stripped of their shares successful nan newly nationalist company.

The suit was revenge March 24 successful Florida authorities court, conscionable 1 time earlier Trump Media & Technology Group debuted connected nan Nasdaq banal market. Trump Media, whose main plus is nan fledgling societal media level Truth Social, soared successful its first 2 days of trading and presently has a valuation of astir $6.8 billion. 

The Trump Media & Technology Group suit alleges that co-founders, Andy Litinsky and Wes Moss, "failed spectacularly" astatine mounting up nan business and creating an effective firm governance structure. As portion of their first woody pinch Trump, nan co-founders had received 8.6 cardinal shares of Trump Media, presently weighted astatine $432 million, which nan suit is seeking to claw back. 

The suit besides blames Litinsky and Moss for Truth Social's rocky debut, claiming that they hired a "deficient" squad to negociate nan societal media platform's improvement and created a "toxic firm culture."

"The Truth Social motorboat did not spell smoothly, starring a dispute property to knock nan institution for agelong personification hold times and method failings, to nan detriment of nan company's business reputation," nan suit claims.

Litinsky and Moss' attorney, Christopher J. Clark, declined to remark connected nan lawsuit. 

Trump Media's filing follows a title revenge successful February successful nan Delaware Court of Chancery by Litinsky and Moss that seeks to forestall nan erstwhile president from taking steps nan 2 said would sharply trim their mixed 8.6% liking successful Trump Media. 

Trump, meanwhile, owns astir 57% of Trump Media, a liking that is weighted astatine astir $4 cardinal — astatine slightest connected insubstantial — based connected today's banal price. Trump and different apical shareholders are presently nether a "lock up" proviso that bars them from trading shares for astatine slightest six months. 

—With reporting by nan Associated Press.

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Aimee Picchi

Aimee Picchi is nan subordinate managing editor for CBS MoneyWatch, wherever she covers business and individual finance. She antecedently worked astatine Bloomberg News and has written for nationalist news outlets including USA Today and Consumer Reports.