A $4 billion business merger involving former President Donald Trump's social media company, Trump Media & Technology Group (TMTG), has hit a snag due to a lawsuit filed by co-founders Andy Litinsky and Wes Moss. The lawsuit, filed in Delaware, alleges that their previously negotiated 8.6% stake in TMTG has been diluted to less than 1%, potentially jeopardizing their financial interests in the merger.
Litinsky and Moss, who co-founded Trump's Truth Social platform, claim that they were deprived of their rightful share in the deal. Their attorney, Christopher J. Clark, stated that Litinsky and Moss played a significant role in creating Truth Social, and now Trump is allegedly attempting to diminish their stake in the company.
The dispute comes as TMTG pursues a merger with Digital World Acquisition Corp, a publicly traded shell company. The merger, valued at up to $4 billion, is currently pending approval from Digital World's shareholders.
Trump, Digital World, and TMTG have not yet responded to the lawsuit or provided comments on the matter. Litinsky and Moss's partnership, United Atlantic Ventures (UAV), had a previous agreement with Trump that would have granted them a substantial number of shares in TMTG.
The lawsuit adds to a series of legal challenges faced by Trump since leaving office, including a recent judgment ordering him to pay $355 million for business fraud. The outcome of the lawsuit and its potential impact on the merger between TMTG and Digital World remains uncertain as the legal proceedings unfold.