Trump Media is suing its co-founders for failing 'spectacularly' and doing 'significant damage' to the business
Trump Media's co-founders "failed spectacularly at every turn" prior to the company's SPAC deal, a new court filing claims.
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- Trump's media company is suing its own co-founders for failing the business ahead of its SPAC deal.
- Wesley Moss and Andrew Litinsky worked with others to cause "significant damage" to the company, the suit claims.
- The lawsuit comes weeks after a company Litinsky and Moss founded filed its own suit against TMTG.
Trump Media is suing its co-founders for failing the company and doing "significant damage" to its business, according to documents filed in a Florida civil court.
The suit, which was filed on March 24, puts blame on three executives within Trump's media empire for attempting to "thwart" a merger with Digital World Acquisition Corp, a SPAC intended to take Trump Media public.
That merger has already gone through successfully — but co-founders Wesley Moss and Andrew Litinsky made "reckless" decisions leading up to the deal that harmed the company, which was "aided" by former Digital World Acquisition Corp. CEO Patrick Orlando, the lawsuit says.
The suit also accuses United Atlantic Ventures of causing damage, a separate company Moss and Litinsky founded that secured them 8.6 million shares in Trump Media.
"TMTG has been forced to file this action to remedy the harm inflicted upon by two faithless fiduciaries and a company they own — Wesley Moss, Andrew Litinsky, and UAV — and to halt their ongoing attempts to do even more damage," the court documents allege.
Moss and Litinsky had the potential to "profit handsomely" if Trump Media completed its merger deal. But the executives instead proposed a merger with Orlando's Benessere Capital Acquisition Corp., a company that "was hardly the best merger candidate," the documents say.
Later, Moss and Litinsky also voted against Trump Media's merger with DWAC at a shareholder meeting.
The filing continued: "Moss and Litinsky failed spectacularly at every turn. They failed to get the corporate governance established. They made a series of reckless and wasteful decisions nd a critical time that caused significant damage to TMTG and a decline in the stock price of its merger partner. Only after 2022, when a new CEO and a duly constituted Board of Directors was put in place to manage the Company with due care and in good faith, was the Company able to remedy Moss's and Litinsky's mismanagement."
The suit from Trump Media comes just a few weeks after United Atlantic Ventures filed its own suit against TMTG, which proposed to block the company's merger with DWAC and claimed that TMTG executives were attempting to deprive them of shares.
Trump Media did not immediately respond to a request for comment from Business Insider.