- President Trump’s media company is suing its co-founder for business failure ahead of a SPAC deal.
- Wesley Moss and Andrew Litinsky worked with others to cause “substantial harm” to the company, the lawsuit alleges.
- The lawsuit comes weeks after a company founded by Mr. Liczynski and Mr. Moss filed its own lawsuit against TMTG.
Trump Media is suing its co-founders for bankrupting the company and causing “material harm” to its business, according to documents filed in a Florida civil court.
The lawsuit, filed on March 24, accuses Trump Media of trying to “block” its merger with Digital World Acquisition Corp., a SPAC intended to take it public. Three executives are being blamed.
Although the merger has already been successfully completed, co-founders Wesley Moss and Andrew Litinsky have announced that former Digital World Acquisition Corporation CEO Patrick Orlando’s The company received “support” and made “reckless” decisions that led to transactions that caused damage to the company. Say.
The lawsuit also accuses a separate company, United Atlantic Ventures, founded by Moss and Liczynski that secured 8.6 million shares of Trump Media stock, of causing harm.
“TMTG is committed to redressing the damage done by two dishonest trustees and the companies they own, Wesley Moss, Andrew Liczynski, and UAV, and thwarting ongoing attempts to do further damage. “This is why we were forced to file this lawsuit,” the court documents state. claim.
Mr. Moss and Mr. Liczynski could “receive significant benefits” if Trump Media completes the merger agreement. But executives instead proposed a merger with Orlando-based Benessere Capital Acquisition Corp., which the documents said is “not the best candidate for a merger.”
Later, Moss and Liczynski also voted against the Trump Media-DWAC merger at a shareholder meeting.
The complaint goes on to say, “Moss and Liczynski failed spectacularly on every count. They failed to establish corporate governance. They made a series of reckless and wasteful decisions that seriously harmed TMTG at critical times. “This led to a decline in TMTG’s stock price.” Only in 2022, with a new CEO and a properly constituted Board of Directors in place and able to manage the Company with due care and integrity, will the Company be able to correct the mismanagement of Moss and Liczynski. It’s done. ”
The Trump Media lawsuit comes just weeks after United Atlantic Ventures filed its own lawsuit against TMTG, which proposed blocking the company’s merger with DWAC and TMTG executives’ plans to sell their shares. He claimed that he was trying to deprive him of his rights.
Trump Media did not immediately respond to Business Insider’s request for comment.
