Former President Donald Trump’s social media merger deal could face last-minute delays thanks to a slew of legal challenges, stalling the long-anticipated shareholder vote that could provide a cash boost to Truth Social.
Trump Media & Technology Group is set to hold a final shareholder vote later this month to approve a merger with Digital World Acquisition Corp., a self-described “blank check company” that takes money from investors to find a company to buy — in this case, Trump’s media company. However, the vote is being snagged by lawsuits seeking to stall the deal.
In one case, Trump Media co-founders Andy Litinsky and Wes Moss are suing the company over allegations the media company is trying to dilute their ownership stake in the business. That challenge was filed on Wednesday in Delaware Chancery Court with a request to expedite the case before the scheduled March 22 shareholder vote.
The merger also faces a challenge from Patrick Orlando, the former chief executive of Digital World Acquisition. In his lawsuit, Orlando is demanding additional shares in the company — prompting a responding lawsuit from Digital World claiming Orlando was not entitled to more shares because of his “avarice, incompetence and general refusal to act.”
The merger of Trump Media and Digital World was first announced more than two years ago but has taken on more significance in recent weeks as it could be a lucrative deal for the former president, who currently faces hundreds of millions of dollars in civil judgments. The deal could value Trump’s stock at $3.2 billion.
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Even if the deal does go through, Trump would not be able to cash out on his earnings right away to cover the $500 million he owes in civil judgments. Under securities laws, the former president would be blocked from selling large amounts of stock all at once. Additionally, the merger deal would prohibit him from selling his stake for at least six months.
The Washington Examiner contacted both Trump Media and Digital World for comment but did not receive a response.
