A Truth Social deal potentially worth billions of dollars in stock options for former President Donald Trump has been threatened by recent last-minute lawsuits, according to a new Politico report.
A final shareholder vote, set for later this month, would make public the company behind Trump's social media platform, but new lawsuits call into the question whether the deal will be completed any time soon, according to the report.
The lawsuits in question come from Trump Media co-founders Andy Litinsky and Wes Moss, who accuse the company of scheming to lock them out of a stake in the company potentially worth millions of dollars.
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Meanwhile, Digital World Acquisition — Trump Media’s partner in the planned combination — "is squaring off with its one-time chief executive, Patrick Orlando, in dueling lawsuits over how much stock in the combined company is owed to Orlando’s ARC Global Investments II, according to a filing with the Securities and Exchange Commission," Politico reports.
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The potential merger is seen as a potential boon to Trump's financial situation in the wake of recent civil judgements that amount to more than $500 million. The merger could net Trump as much as $3.2 billion, Politico reports.
Thanks to news of the lawsuits, Politico reports Digital World’s stock dropped from $50 to $39 on Friday.
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