Donald Trump is not so busy running for President that he cannot take the time to sue the co-founders of his flailing Truth Social social media company, demanding that they fork over their shares in the firm currently estimated as being worth $606 million.
The new lawsuit – Donald Trump has sued so many people over the years that it is easy to lose track of which is which – was filed by Trump Media on March 24 in Florida state court against Andy Litinsky and Wes Moss. Moss and Litinsky were contestants on Trump’s reality television show “The Apprentice” and co-founded Truth Social.
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The two came up with the idea for Truth Social, a new social media company to compete directly against Twitter, after Twitter banned Trump from its platform during his presidency due to his making hostile, racist and false posts.
Trump Media leaped out of the gate when it began trading on the NASDAQ on March 26, hitting a high of above $79 a share. The company had a valuation of about $10 billion, but that dropped to only $6.6 billion after its stock plunged to a low of $51.60 on Tuesday. Donald Trump saw his personal stake in Truth Social drop in value from more than $6 billion to $3.8 billion.
But all of this was just on paper. Financial experts said the stock was overvalued only because of the special deals that Trump made with investors and rules preventing the sale of stock for at least six months.
So, what caused the stock to plummet?
Even though it was widely reported long before the stock offering that Truth Social and Trump Media were losing money, the stock dropped after it came out this week that the company reported a net loss of $58.2 million on revenue of just $4.1 million in 2023.
Ignoring the facts, Trump Media CEO Devin Nunes said, “Closing out the 2023 financials related to the merger, Truth Social today has no debt and over $200 million in the bank, opening numerous possibilities for expanding and enhancing our platform.”
“We intend to take full advantage of these opportunities to make Truth Social the quintessential free-speech platform for the American people,” Nunes said.
Yet, someone must take the blame for Truth Social’s failures. After all, Donald Trump cannot be responsible for any failure, can he? It’s not like he was forced to declare bankruptcy multiple times over the years, has been sued many times, lied about his net worth, and even been found guilty in a court of law of illegally inflating the value of his assets.
The lawsuit even sounds like Donald Trump wrote it himself.
“Moss and Litinsky failed spectacularly at every turn,” it says. “This was a phenomenal opportunity for Moss and Litinsky,” and goes on to assert that the two were merely “riding President Trump’s coattails.”
“Without President Trump, Truth Social would have been impossible,” it says.
Trump Media & Technology Group owns Truth Social. It was founded in Florida in 2021. In March, it merged with Digital World Acquisition Corp. (DWAC), an American special-purpose acquisition company (SPAC).
It’s so surprising, however, that this could happen, that Trump could have so misjudged these people. It is, after all, a widely known fact that Donald Trump only ever hires the best and the smartest people to work for him.
