Trump Media & Technology Group (TMTG) is currently embroiled in a legal battle with two Truth Social co-founders, Wesley Moss and Andrew Litinsky, over ownership stakes in the company. TMTG filed a lawsuit in Florida court against Moss and Litinsky, claiming that an agreement outlining ownership between the co-founders and former President Trump is now void. The suit comes in response to a lawsuit filed by Moss and Litinsky in Delaware, accusing TMTG of improperly diluting their stake. TMTG argues that Moss and Litinsky’s claims are baseless, as they were not party to the agreement.
The original service agreement between Trump and Moss and Litinsky’s company, United Atlantic Ventures (UAV), granted UAV 8.6 million shares in the new social media firm and Trump 90 million shares. However, TMTG alleges that Moss and Litinsky failed to earn their shares due to their handling of the company’s launch. TMTG accuses Moss and Litinsky of making reckless and wasteful decisions that caused damage to the company and a decline in the stock price of its merger partner. TMTG is seeking to strip Moss and Litinsky of their ownership stake in the company.
Despite the legal dispute, Truth Social parent company, TMTG, went public last week through a merger with Digital World Acquisition Corp. (DWAC), with a market value of around $8 billion in its debut. Former President Trump, the presumptive 2024 GOP presidential nominee, holds 78.7 million shares in the social media firm. Truth Social was launched by Trump in February 2022, a year after he was banned from various social media platforms following the events of January 6, 2021. After being de-platformed, Trump partnered with Moss and Litinsky to create a new social media platform.
In response to the legal battle, a Delaware judge has called for a hearing to determine if Moss and Litinsky should receive the 8.6% stake in the company they claim. The outcome of this hearing could potentially impact the ownership structure of TMTG and Truth Social. Despite facing challenges in its early stages, Truth Social aims to provide a platform for free speech and is positioned as a “true start-up” in the social media landscape. The developments surrounding the ownership dispute and the company’s public debut reflect the complexities and challenges of launching a new social media platform in a competitive market.