Trump Media is suing its co-founders for going bankrupt and causing “significant damage” to its business, according to documents filed in a Florida civil court.
The complaint, filed March 24, accuses three executives of Trump’s media empire of trying to “thwart” a merger with Digital World Acquisition Corp, a SPAC intended to take Trump Media public.
That merger has already happened successfully, but co-founders Wesley Moss and Andrew Litinsky made “reckless” decisions ahead of the deal that hurt the company, which was “helped” by the former CEO of Digital World Acquisition Corp., Patrick Orlando, the trial. said.
The suit also accuses United Atlantic Ventures of causing damage, a separate company founded by Moss and Litinsky that secured them 8.6 million shares in Trump Media.
“TMTG was forced to bring this action to repair the harm inflicted by two unfaithful trustees and a company they own – Wesley Moss, Andrew Litinsky and UAV – and to stop their ongoing attempts to cause even more harm. damage,” documents the court. allege.
Moss and Litinsky had the potential to “make big profits” if Trump Media completed its merger deal. But executives instead proposed a merger with Benessere Capital Acquisition Corp. of Orlando, a company that “was not the best candidate for merger,” the documents state.
Later, Moss and Litinsky also voted against Trump Media’s merger with DWAC at a shareholders’ meeting.
The filing continues: “Moss and Litinsky failed spectacularly at every turn. They failed to establish corporate governance. They made a series of reckless and unnecessary decisions at a critical time that caused damage significant losses to TMTG and a decline in the stock price of its merger partner. It was not until after 2022, when a new CEO and a properly constituted board of directors were put in place to manage the company carefully and in good faith, that the company was able to remedy the mismanagement of Moss and Litinsky.
Trump Media’s lawsuit comes just weeks after United Atlantic Ventures filed its own suit against TMTG, which proposed blocking the company’s merger with DWAC and claimed TMTG executives were trying to starve them of stock.
Trump Media did not immediately respond to a request for comment from Business Insider.
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