Former President Donald Trump has initiated legal action against two of his co-founders at Truth Social, aiming to acquire their stake in the recently public company.
In a lawsuit filed on March 24 and first disclosed by Bloomberg, Trump accuses Andy Litinsky and Wes Moss, both known from The Apprentice, of neglecting their responsibilities in properly establishing Truth Social, leading to significant harm to the company during a critical period.
The lawsuit alleges that Litinsky and Moss, as de facto directors responsible for day-to-day operations, failed to establish the company’s governance structure, execute the launch of the social media platform, and secure a merger partner necessary for capital access, despite holding ample incentive through their ownership of 8.6 million shares.
Trump further claims that their actions hindered Truth Social’s merger deal and caused harm, advocating for Litinsky and Moss to forfeit their shares and be held liable for damages.
At the time of the lawsuit, Trump held 90 million shares (90%) of Trump Media Group, while Litinsky and Moss’s United Atlantic Ventures owned 8.6 million shares (8.6%), with Bradford Cohen owning 1.4 million shares (1.4%).
Despite Truth Social’s initial $8 billion valuation upon going public on March 26, its stock quickly declined following revelations of a $58 million loss in 2023, resulting in a significant decrease in Trump’s net worth by $1 billion.
