The legal battle surrounding Donald Trump’s social media startup has escalated amidst a turbulent period for the former president. The founders of the website are now challenging a six-month ban on selling their shares, which they believe is a retaliatory action taken by Trump.
According to a report from Bloomberg on Tuesday, a Delaware judge has allowed the incorporation of a new complaint filed by Truth Social founders Andy Litinsky and Wes Moss into a larger lawsuit that questions the valuation of their shares.
As Trump faces multiple criminal charges and tries to regain his political influence, he finds himself entangled in a web of legal battles.
According to the report, Litinsky and Moss claim that the lockup period is causing them “irreparable harm.” They argue that this restriction is also applicable to Trump himself, who holds a nearly 60 percent stake in the company.
According to the report, Trump Media’s attorneys argued that share lockups are a common practice in transactions involving companies like Digital World Acquisition Corp (DWAC). They further stated that allowing the co-founders to sell their shares before the agreed-upon lockup period would have a detrimental effect on both the company and its other shareholders.
In a Delaware court, Judge Sam Glasscock III acknowledged the significance of the restriction, noting that the new claims would bring about substantial modifications to the existing case. The original objective of the case was to prevent the merger between Trump Media and DWAC.
Litinsky and Moss are also attempting to prevent a separate lawsuit initiated by Trump against them in Florida. Trump accuses them of mishandling the setup of Trump Media before its merger. Litinsky and Moss argue that this lawsuit is an effort to divert attention from their legal challenge in Delaware and should have been filed in the same jurisdiction.
On Tuesday, Newsweek reached out to Truth Social for comment through its designated investor relations channel.
Despite the merger’s initial promise of a financial boost, Trump Media has experienced a significant decline in value. The company’s stock price has plummeted by almost 25 percent since it started trading under the former president’s initials, DJT, on March 25th. This drop in value amounts to nearly $3 billion in losses for the company.
Trump is currently dealing with numerous legal challenges in addition to his corporate conflicts.
One of Trump’s most pressing concerns is his upcoming trial for hush money, scheduled to commence on April 15. This case revolves around accusations of Trump concealing payments made to adult film actress Stormy Daniels. The trial has been surrounded by controversy, with Trump urging Judge Juan M. Merchan to step down due to perceived biases.
The trial will proceed as planned, despite efforts to postpone it. Trump will be facing 34 charges related to falsifying business records.
The legal troubles for Trump continue, as he faces a case involving the alleged illegal retention of classified documents at his Mar-a-Lago estate. A total of 40 felony counts are being brought against him. It is important to note that Trump has denied any wrongdoing in this matter.
According to former U.S. acting solicitor general Neal Katyal, there is a high likelihood that the former president will be convicted in both criminal cases.