This Is Why Truth Social’s Co-Founders Have Sued Donald Trump Amid His Myriad Legal Losses

The co-founders of Truth Social, Donald Trump’s ambitious social media venture, have taken legal action against the former President, alleging a scheme to undermine their ownership stake in the company. Andy Litinsky and Wes Moss filed a lawsuit against Trump, claiming that he conspired to diminish their share in the company, potentially worth hundreds of millions upon his departure from office.

Trump was assigned 90% of the company’s shares, with 8.6% percentage for Litinsky and Moss as well as a small percentage for another lawyer involved in the deal. Now, the lawsuit blames Trump for attempting to dilute the partnership’s stake in Truth Social through corporate maneuvering tactics. Specifically, Trump Media & Technology Group (TMTG), the entity behind Truth Social, is alleged to have pursued actions to increase the authorized stock from 120 million shares to 1 billion shares, thereby diminishing the value of Litinsky and Moss’ shares.

As per Mediaite, the timing of these alleged maneuvers is crucial, as Trump Media has been in talks to merge with Digital World Acquisition Corp (DWAC) in a move to take the company public. There are probable chances that this merger could value Trump’s stake in Truth Social at over $3 billion. Litinsky and Moss have threatened to block the merger unless they receive the board seats they claim to be entitled to. The lawsuit, filed in the Delaware Court of Chancery, alleged, “Trump has recently attempted to ‘drastically dilute’ the partnership’s stake as part of what they called an ‘11th hour, pre-merger corporate maneuvering’ tactic designed to increase the amount of authorized stock, from 120 million shares to 1 billion shares.”

According to Christopher Clark, the lawyer representing Litinsky and Moss, the co-founders put in prominent effort to create Truth Social and should be duly compensated for their contributions. This legal battle adds another layer of complexity to Trump’s attempts to monetize Truth Social and capitalize on his vast following. Clark said, “It’s not like they went out and bought a lottery ticket. They actually went out and did the work, they created Truth Social, and now the beneficiary of that, Donald Trump, doesn’t want to pay.” as reported by The Independent.

The lawsuit underscores the risks and challenges associated with entrepreneurial ventures involving high-profile personalities like Trump. Despite their initial enthusiasm and contributions to the creation of Truth Social, Litinsky and Moss find themselves embroiled in a legal dispute over ownership rights, highlighting the complexities of business partnerships in the digital age. As the legal proceedings unfold, the outcome will not only impact the financial interests of Litinsky, Moss, and Trump but also shape the future of Truth Social and its role in the ever-evolving landscape of social media platforms.