Donald Trump took the company behind his social network Truth Social public — and after a quick run up came the release of the company’s results and then an even steeper fall.
Donald Trump now claims that the co-founders of his company Trump Media, Andy Litinsky and Wes Moss, failed to properly set up the management of the company to launch the entire social network and find a suitable partner to go public, which ultimately resulted in a 21 percent drop in shares.
The punishment is that they will lose their almost 9% share worth more than 606 million dollars (approx. 14 billion crowns), Bloomberg reported.
Trump filed a lawsuit in a Florida court on March 24. In it, he claims that the pair tried to torpedo the agreement to enter the stock exchange as part of the fight for their share. The opposing party, on the other hand, claims that Trump wanted millions of additional shares, which would virtually wipe out their stake in the company.
A Delaware judge refused to expedite Litinsky and Moss’ lawsuit after Trump’s lawyers agreed not to seek to reduce their stake in the company. Both judges also said they would seek a stay on Trump’s lawsuit in Florida.
The judge did not know about her, he was, in his words, “amazed” because the usual thing would be to file a counterclaim in the Delaware court. Trump faces punishment for this legal loophole.
Despite the sharp fall, the company’s value is more than seven billion dollars, valuing Trump’s 57% stake at roughly $4 billion.
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