The Trump Media & Technology Group co-founders have filed a lawsuit accusing the company of scheming to dilute their shares, potentially costing them hundreds of millions of dollars. Andy Litinsky and Wes Moss, former contestants on “The Apprentice,” allege that executives, including Donald Trump himself, engaged in corporate maneuvering to reduce their stake in the company.
Litinsky and Moss initially pitched the idea of a Trump-branded media startup to Trump in 2021, resulting in a deal that gave Trump a 90% stake and UAV 8.6%. However, the lawsuit claims that executives planned to increase the authorized stock from 120 million shares to 1 billion, diminishing Litinsky and Moss’ stake to less than 1% before the merger.
The merger in question involves Trump’s company, including his social media network Truth Social, merging with blank-check company Digital World Acquisition. According to SEC filings, Trump’s shares could be worth over $3 billion after the merger, while UAV’s stake could be valued at nearly $300 million.
This legal battle comes amidst ongoing delays and investigations, with the final shareholder vote on the merger scheduled for March 22nd. The lawsuit highlights the complexities and challenges facing Trump Media and Digital World Acquisition as the merger continues to face obstacles.
It is important to note that Litinsky and Moss, as former contestants on “The Apprentice,” have been intricately involved in Trump’s Business ventures, adding a layer of personal history to this high-stakes legal battle.
Read More Business News
