Trump Media and Tech Group (Politics Allowed~Non-Moderated) (DJT)

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Trump's $4 Billion SPAC Deal Hit by Wave of Lawsuits Over Shares

Source: Bloomberg

March 1, 2024 at 10:00 AM EST


Former President Donald Trump’s potential $4 billion windfall from a blank-check merger involving the company that runs his social media platform could be derailed by a flurry of legal disputes with his co-founders. Three lawsuits filed this week over the deal’s share allocation threaten to at least postpone the already long-delayed plan to have Digital World Acquisition Corp. acquire Trump Media & Technology Group, the vehicle for Trump’s Truth Social platform.

The proposed special purpose acquisition company deal is set for a shareholder vote on March 22. At least one of the suits is requesting that a judge block the deal until the issues are resolved, and Digital World said other claimants had also suggested they might make a similar request. If such an order is granted, the legal back and forth could drag on for weeks or even months.

Digital World’s stock has soared this year, making Trump’s stake worth billions, at least on paper. It’s a possible financial lifeline for the former president, who is facing massive penalties from two legal cases. Earlier this week, he revealed that he may not have the resources on hand to post an appeal bond to cover the $454 million New York asset-fraud verdict issued against him. Writer E. Jean Carroll is also demanding he pay an $83 million defamation award.

In one of the SPAC suits, Trump Media co-founders Andy Litinsky and Wes Moss, both former contestants on The Apprentice, suggested that the huge amount Trump owes in legal judgments makes the merger a possibly “existential” liquidity event for him and might be motivating a “last-minute stock grab” at their expense.

Read more: https://www.bloomberg.com/news/articles/2024-03-01/trump-s-4-billion-spac-deal-hit-by-wave-of-lawsuits-over-shares?srnd=homepage-americas