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Legal Battle: Donald Trump Takes Co-Founders of Social Media Site to Court

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In a recent development, former President of the United States, Donald Trump, has filed a lawsuit against two co-founders of Trump Media, alleging mismanagement of his social media platform, Truth Social.

Accusing Wes Moss and Andy Litinsky of mishandling the social media site, Trump is seeking to strip them of their shares in the company. This comes after the duo had previously sued Trump in February to prevent any reduction in their 8.6% ownership stake, currently valued at approximately $600 million (£477 million).

The concept of Truth Social was proposed by Moss and Litinsky in the aftermath of the Capitol riot, which led to Trump’s suspension from Twitter, prior to its rebranding as X. Notably, both individuals had originally crossed paths with Trump as contestants on the reality show, NBC’s The Apprentice.

Legal action was initiated on March 24 in a Florida state court, where Trump’s legal team accused Moss and Litinsky of gross incompetence in their roles overseeing the day-to-day operations of Trump Media & Technology Group, the parent entity of Truth Social.

The lawsuit contends that the two executives impeded the company’s progression towards going public, a process that culminated in its recent merger with a special purpose acquisition company. Trump’s attempt to dilute the duo’s ownership was met with resistance as they alleged he intended to expand the company’s total shares from 120 million to 1 billion in the previous legal dispute.

Established in 2021 following Trump’s ban from popular social media platforms amidst the fallout of the January 6 Capitol incident, TMTG, spearheaded by Moss and Litinsky, envisioned Truth Social as a distinctive platform. A private contract agreement granted Trump a 90% stake in the platform prior to its public listing.

Despite facing regulatory scrutiny and complexities surrounding its merger agreement, Truth Social stock experienced a meteoric rise post-public listing, touching a peak of $79 (£63) before witnessing a subsequent decline in its valuation.

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