Since the official listing and trading of Trump Media and Technology Group's stock (code: DJT) last Tuesday, it has caused a wave of heat in the market. However, the good times didn't last long. After reaching a historic high last Wednesday, the stock plummeted consecutively, currently priced at $51.6, a 22% drop from last Wednesday's closing price.
Amidst the hustle and bustle of discussions from the outside world about how Trump's wealth has shrunk by a total of one billion dollars, it was revealed that Trump is currently suing two co founders of Trump Media and Technology Group.
According to legal documents, the lawsuit was filed in a Florida court on March 24th this year. The plaintiff, Trump, claimed that the two co founders, Andy Litinsky and Wes Moss, failed to properly establish the governance structure of Trump Media Company, expand the influence of the social platform Truth Social as agreed, and help find suitable partners, damaging the company's interests.
Trump also pointed out that these two individuals subsequently began to continuously prevent Trump Media and Technology Group from going public through shell mergers in order to compete for more shares in the company. Trump is demanding the recovery of the 8.6% stake in DJT held by these two individuals, which is currently worth $606 million.
The War between Apprentices and Mentors
Trump's value has doubled due to the listing of DJT, and although the stock is currently in a state of turmoil, its valuation is still as high as $7.05 billion. And Trump owns about 57% of the company's shares, with a personal book wealth of 4.02 billion US dollars.
At present, Trump is unable to sell this portion of the shares for profit taking and will need to wait for a lockdown period of about six months. Many people in the market speculate that Trump will partially monetize after the lockdown period to support his costly legal lawsuit.
Litinsky, Moss, and Trump have a deep connection, both of whom have participated in Trump's reality show "Apprentice" and successfully promoted the idea of founding Truth Social to Trump after he was banned from speaking on Twitter.
After the establishment of the new company, Litinsky and Moss were immediately tasked with finding a shell company for Trump's Truth Social and helping the new company go public. But Trump claimed that they had failed in both tasks, so he demanded that the judge strip these two individuals of their positions and reclaim their shares.
Litinsky and Moss filed a lawsuit against Trump in February, accusing him of diluting their shares by increasing the total authorized shares of the company from 120 million to 1 billion. It is said that Litinsky and Moss chose to file a lawsuit before the media company went public, which was a retaliation against Trump.
In addition to Litinsky and Moss, Trump also listed Patrick Orlando, founder of shell company DWAC, as a co defendant, accusing him of also participating in the violation.