Donald Trump is suing two cofounders of his Truth Social social media platform, claiming that Andy Litinsky and Wes Moss — former contestants on “The Apprentice” — botched the company’s set-up and don’t deserve their 8.6% stake.
Trump Media & Technology, which now owns Truth Social, went public on March 25. The previously unreported lawsuit was filed on March 24 in Sarasota County, Fla., the day before Trump Media went public.
The stock was up 6.1% at $51.63 at 3:53 p.m. EST in New York on Tuesday, according to Bloomberg, which would make Moss and Litinsky’s stake worth $606 million.
On Monday, the company, which initially soared by 50%, saw shares plummet more than 25% in midday trading after SEC filings revealed that Truth Social lost over $58 million in 2023, on revenue of only $4.1 million.
The lawsuit, which also names Benessere Investment Group’s Patrick Orlando as a defendant, alleges that Litinsky and Moss “failed spectacularly at every turn” in establishing corporate governance and finding a suitable merger partner. It also claims that Litinsky and Moss were merely “riding President Trump’s coattails.”
The two defendants are also accused of “ceaseless attempts to thwart the [merger] deal.” The legal action is designed to “halt their ongoing attempts to do even more damage.”
Trump, who is positioned to become the Republican nominee for the 2024 presidential election, is the company’s majority shareholder. He holds about a 60% stake in Truth Social, or about 79 million shares of the public company’s 125 million.
Given his numerous financial and legal woes, it would make sense that Trump was in need of a cash infusion. He managed to pay a $175 million bond payment in his New York civil fraud case on Monday, thanks to billionaire Don Hankey, ABC News reported.
A judge originally set the bond payment at $454 million, which was later drastically reduced by a New York appellate court. Trump has also been selling $60 Bibles, a fundraising effort that was mocked this weekend on “Saturday Night Live.”
Litinsky and Moss placed 6th and 7th, respectively, on Season 2 of “The Apprentice” in 2004 on NBC.
Bloomberg first reported the news.
