Trump Media's Legal Battle: Lawsuit Challenges Co-founders' Ownership of Truth Social

Trump Media & Technology Group, the owner of Truth Social, a social media platform associated with former President Donald Trump, has initiated legal action against two of its co-founders.

The company seeks to revoke their ownership shares in the platform. The lawsuit, filed by Trump Media, alleges that Andy Litinsky and Wes Moss, both former contestants on Trump's reality TV show "The Apprentice," made detrimental decisions during the establishment of the company, resulting in significant harm.

The legal dispute adds another layer of complexity to Trump Media's journey toward taking Truth Social public, a move that has attracted considerable attention on Wall Street and has contributed to a substantial increase in Donald Trump's personal wealth. The lawsuit, filed in a Florida state court on March 24, accuses Litinsky and Moss of incompetence, claiming that their actions led to adverse consequences for the company.

According to the lawsuit, Litinsky and Moss, through their business entity United Atlantic Ventures, were slated to receive 8.6 million shares in Trump Media, collectively valued at approximately $444 million based on recent stock prices. However, Trump Media now seeks to reclaim these shares, arguing that Litinsky and Moss failed to uphold their responsibilities and squandered the opportunities presented to them.

The lawsuit alleges that Litinsky and Moss, despite their association with Trump and their participation in "The Apprentice," exhibited poor judgment and mismanagement throughout their involvement with Trump Media. It accuses them of making reckless decisions that impeded the company's progress and undermined its prospects for success.

The legal action comes after Litinsky and Moss filed their own lawsuit against Trump in Delaware, claiming that the former president intended to diminish their ownership stake in Trump Media. Their lawsuit contends that Trump's actions would unfairly disadvantage them and diminish the value of their shares in the company.

In its lawsuit against Litinsky and Moss, Trump Media asserts that the success of Truth Social is intrinsically linked to Donald Trump's brand and influence. It argues that Litinsky and Moss benefited from their association with Trump and were positioned to capitalize on the platform's potential, but their incompetence jeopardized the company's future.

Despite the legal challenges and internal disputes, Trump Media proceeded with its initial public offering (IPO) last week, with Donald Trump retaining a significant ownership stake in the company. Trump's stake in Trump Media, which stands at 78.8 million shares, is currently valued at approximately $4.1 billion, reflecting a substantial increase in value since the IPO.

As the legal battle unfolds, Trump Media and its co-founders remain embroiled in a contentious dispute over ownership and control of the company. The outcome of these legal proceedings could have far-reaching implications for the future of Truth Social and the broader landscape of social media platforms.