April 19, 2024

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Truth Social's owner, Trump Media, is suing two former 'mentees', seeking to wipe out their stock

Truth Social's owner, Trump Media, is suing two former 'mentees', seeking to wipe out their stock



CNN

Trump Media and Technology Group, owner of Truth Social controlled by former President Donald Trump, recently filed a lawsuit against two of its founders seeking to cancel their stakes in the multibillion-dollar company.

The lawsuit represents the latest development in the legal saga surrounding the push to take Trump Media and Truth Social public — a deal that sent Trump's net worth soaring and created a frenzy on Wall Street.

Trump Media filed a lawsuit on March 24 in Florida state court against Andy Letinsky and Wes Moss, co-founders of Trump Media who were also contestants on Trump's NBC show “The Apprentice.” That lawsuit alleges they made a series of “reckless and wasteful decisions” when they tried to create the company that caused significant damage.

“Moss and Litinsky failed spectacularly at every turn,” the lawsuit said.

Lawyers representing United Atlantic Ventures — the company through which Letinsky and Moss work — declined to comment.

The lawsuit, which was first reported by Bloomberg NewsHe asks the court to force Litinsky and Moss to return their shares in the company.

The lawsuit states that Litinsky and Moss will receive 8.6 million shares in the new company, through United Atlantic Ventures. At Tuesday's closing price of $51.60, that stake is worth about $444 million.

“This was a great opportunity for Moss and Letinsky,” the lawsuit said, arguing that the former “The Apprentice” contestants were “following President Trump’s coattails.”

“Without President Trump, social truth would have been impossible,” the lawsuit states.

Letinsky and Moss, through United Atlantic Ventures, had previously filed their own lawsuit in Delaware against Trump, saying the former president was planning to dilute their stake in the new company.

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Trump owns 78.8 million shares in Trump Media, which went public last week. The value of this share is estimated at about $4.1 billion, an increase of $228 million from Monday’s closing price.

CNN's Ramisha Maroof contributed to this report