April 3, 2024

Trump Suing to Zero Out Co-Founders of Truth Social

Donald Trump is doing what Donald Trump does best… sue people.

On March 24, Trump filed a lawsuit that slipped under the radar.

The suit was to zero out the co-founders of Truth Social.

Get Rid of Them

According to Trump’s suit, the co-founders of his social media website Truth Social, Andy Litinsky and Wes Moss, bungled their duties and do not deserve to have any stock in the company.

For their work, Litinsky and Moss were getting 8.6% of the stock, Trump Media & Technology Group Corp. (trading as DJT on NASDAQ), which is currently valued at more than $600 million.

This suit is in response to the suit filed in Delaware against Trump by Litinsky and Moss regarding their promised stake in the company.

When Trump was building his casinos in Atlantic City, he was notorious for suing vendors after the fact to either reduce or dismiss his bill for breach of contract for services rendered, so this is not exactly a surprise.

That would be especially the case when you consider how disastrous the initial launch of Truth Social was.

When the platform first went live, it was only for Apple devices, and took considerable time before Android devices could use the platform.

There were also no embed codes available for users who wanted to share posts on their blogs or news sites.

Even now, the site has barely been monetized, and it only has a user base of about nine million people.

The stock came out of the gates strong last week, but it has gone down from its initial high of $79.38 to under $50 per share midday Wednesday.

The drop occurred after earnings reports were published, showing the company had lost more than $58 million against income of roughly $4 million in 2023.

CEO Devin Nunes, the former Republican California congressman, announced that the company was debt-free with a recent influx of $200 million in cash, which led to a small bounce back, but that was negated when trading opened on Wednesday.

The company's valuation has been criticized by tech industry experts, who believe the stock will ultimately plummet to $2 to $3 per share.

Others have stated that operating with such a loss as a startup is nothing new, pointing to companies like Amazon that were evaluated in the billions while still losing money during their early days.

Democrats are also pouring gasoline on this fire, claiming that the company is nothing more than a way for foreign leaders to pass money to Trump by investing in the company to pump up the stock.

I would suspect this will be a hot topic of discussion as the election gets closer.

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