Former President Donald Trump’s media business, Trump Media & Technology Group, has recently filed a lawsuit against two of its co-founders, Andy Litinsky and Wes Moss. Both Litinsky and Moss were contestants on Trump’s reality show “The Apprentice” and were instrumental in the creation of the social media platform Truth Social. The lawsuit, filed in Florida state court on March 24, alleges that Litinsky and Moss mismanaged the business and should be stripped of their shares in the newly public company.

The timing of the lawsuit is significant, as it comes just one day before Trump Media & Technology Group made its debut on the Nasdaq stock market. The company, which saw a surge in its valuation to about $6.8 billion in its first two days of trading, is primarily focused on the growth and expansion of Truth Social, a platform that aims to provide a conservative alternative to mainstream social media.

The lawsuit specifically accuses Litinsky and Moss of failing to set up the business effectively and create a proper corporate governance structure. The co-founders had initially received 8.6 million shares of Trump Media, currently valued at $432 million, as part of their deal with Trump. The lawsuit aims to reclaim these shares due to the alleged mismanagement of the business by Litinsky and Moss.

Furthermore, the lawsuit points fingers at Litinsky and Moss for the rocky start of Truth Social, citing a deficient team and a toxic corporate culture as reasons for the platform’s flawed launch. The lawsuit claims that the negative press surrounding the platform’s debut, including long user wait times and technical issues, damaged the company’s business reputation.

Litinsky and Moss have not yet publicly commented on the lawsuit, although their attorney, Christopher J. Clark, has declined to make a statement. This legal action by Trump Media follows a previous complaint filed by Litinsky and Moss in February in the Delaware Court of Chancery. In that complaint, Litinsky and Moss sought to prevent Trump from taking measures that would diminish their combined 8.6% stake in the company.

It is worth noting that Trump owns approximately 57% of Trump Media, a stake valued at around $4 billion based on the current stock price. Trump and other major shareholders are subject to a “lock-up” provision that prevents them from selling their shares for at least six months.

In conclusion, the legal battle between Trump Media & Technology Group and its co-founders, Litinsky and Moss, represents a significant development in the company’s early stages. The lawsuit sheds light on the challenges faced by Truth Social and the internal disputes that have arisen within the organization. The outcome of this legal dispute will undoubtedly have lasting implications for the future of Trump Media’s business operations.

With insightful reporting by the Associated Press, this article provides a comprehensive overview of the complex legal issues surrounding the Trump Media & Technology Group lawsuit. As the situation continues to unfold, stakeholders and observers alike will be closely monitoring the developments in this high-profile case.