San Francisco sued Trump Media over a Truth Social service that charges trading firms as much as $100,000 a month for early access to President Donald Trump’s posts, alleging the product gives wealthy investors an unfair advantage on potentially market-moving information.
City Attorney David Chiu announced the lawsuit Tuesday after filing it Monday in San Francisco Superior Court. The complaint targets Truth API, a data service Trump Media unveiled in July that gives paying subscribers faster access to posts from Trump and other prominent Truth Social accounts.
The service promises speed — and a lot of it. Trump Media interim CEO Kevin McGurn has said Truth API gives subscribers a “50 millisecond advantage” that feeds directly into algorithmic trading platforms, according to the complaint. More than 10 customers, primarily high-frequency trading firms, had signed up for the service by late August, according to the complaint.
“Trump Media created a marketplace that enables insider trading, which Trump directly profits from,” Chiu said in a statement. “This scheme turns the public trust into private profit.”
The lawsuit alleges Trump Media violates California’s Unfair Competition Law by aiding and abetting violations of federal ethics and anti-corruption law and by violating federal insider-trading laws.
Trump Media has defended Truth API as a financial data product. McGurn previously said the service was created in response to market demand, while the company has touted it as a new recurring revenue stream.
San Francisco is asking the court to block Trump Media from offering Truth API or a similar service and is seeking civil penalties of up to $2,500 for each alleged violation.
The lawsuit is the latest legal challenge to Truth API. The Intercept and Freedom of the Press Foundation sued Trump and several White House officials last month, arguing that selling faster access to official government information through the service violates constitutional protections.
Trump Media did not immediately respond to TheWrap’s request for comment.
