Quiver Quantitative - In a significant development, Republican presidential candidate Donald Trump is set to be deposed in a legal dispute with the co-founders of his social media company, Trump Media & Technology Group (DJT). This deposition, scheduled for April 15 in New York, coincides with the start of Trump's first criminal trial. The dispute centers around claims by Andy Litinsky and Wes Moss, former contestants on Trump's reality TV show "The Apprentice," who allege they were promised a significant share in Trump Media for their role in launching the company. Litinsky and Moss, through their United Atlantic Ventures partnership, are battling to secure the 8.6% of pre-merger stock they claim to have been pledged.
The legal battle has intensified with Trump Media countering the co-founders’ claims by suing them in Florida, seeking to revoke their stock ownership. This lawsuit alleges that Litinsky and Moss did not fulfill their duties and thus failed to earn their shares, citing mismanagement as the key issue. Delaware judge Sam Glasscock anticipates holding a hearing to resolve the dispute by the end of April. Trump, who owned a dominant 90% of the social media company before its merger with a special purpose acquisition company (SPAC), continues to hold a majority stake in the now-public entity.
Trump Media, owner of the Truth Social platform, has seen its stock value skyrocket since the merger, driven largely by speculator interest linked to the former president’s involvement, despite weak financial foundations. However, the company recently experienced a 4.2% decline in midday trade, bringing its valuation to over $6 billion. This financial volatility comes amid a backdrop of multiple legal challenges faced by Trump, including four criminal cases where he has pleaded not guilty to all charges.
The upcoming deposition and the overlapping criminal trial in New York state court represent just a segment of Trump's legal woes. The New York case involves charges of falsifying business records linked to a payment to a porn star, alleged interference in federal elections in Washington, a state case in Georgia regarding efforts to reverse the 2020 election results, and a federal case in Florida over his handling of sensitive government documents post-presidency. These multifaceted legal challenges underscore a period of intense scrutiny for the former president, impacting both his personal and professional realms.
This article was originally published on Quiver Quantitative