Donald Trump has sued his co-founders behind Truth Social in an attempt to take over their shares in the company, alleging they bungled their duties and aren’t worthy of holding stake in the company.
That lawsuit, first reported by Bloomberg, was filed on March 24 in a Florida state court against Andy Litinsky and Wes Moss—ex-business associates of Trump who own an 8.6 percent stake in the company, currently valued at approximately $606 million. Trump wants that number to be zeroed out, his attorneys wrote.
It comes on the heels of Litinsky and Moss suing Trump themselves in a Delaware court in February, claiming the former president and other execs schemed to deprive them of their rightful stake in the company.
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In his own lawsuit, Trump alleges that Litinsky and Moss didn’t set up the corporate governance structure properly for Trump Media and failed to find a viable merger partner—failures that mean they shouldn’t cash in on the company going public. In the duo’s lawsuit against Trump, they accused him of trying to seek millions of extra shares—a move that would have diluted their stake in the company.
Truth Social, whose advertising is the sole revenue stream for its parent company Trump Media, saw its share price plummet by 21 percent on Monday, but stabilized by Tuesday, according to Bloomberg. That volatility is likely because its much-hyped launch last week was given a reality check by SEC filings on Monday, which revealed Truth Social lost a whopping $58 million last year while generating just $751,000 in its final quarter of 2023.
Trump’s stake in Truth Social has increased his projected net worth, which had taken a hit in recent months amid him his growing legal fees and court losses that have him on the hook for hundreds of millions.
The former president’s stake in Trump Media, just under 60 percent, was worth approximately $4 billion on Tuesday. Trump is unable to cash out on his shares for six months, however, due to an agreement he made with the a special purpose acquisition company he merged with to go public.
Bloomberg reported that a Delaware judge, Sam Glasscock III, was “gobsmacked” to learn of Trump’s lawsuit in Florida. Glasscock reportedly said Monday he would consider sanctions against Trump in the Delaware case over the Florida filing.
