The SEC's Order Finds That DWAC Violated The Antifraud Provisions Of The Federal Securities Laws. DWAC Agreed To A Cease-And-Desist Order And To Pay An $18M Penalty In The Event It Closes A Merger Transaction
Portfolio Pulse from Happy Mohamed
The Securities and Exchange Commission (SEC) has settled fraud charges against Digital World Acquisition Corporation (DWAC), a special purpose acquisition company (SPAC), for making material misrepresentations in forms filed with the SEC as part of DWAC’s initial public offering and proposed merger with Trump Media & Technology Group Corp. (TMTG). DWAC has agreed to a cease-and-desist order and to pay an $18 million penalty if it closes a merger transaction.
July 20, 2023 | 9:08 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
DWAC has been charged with fraud by the SEC for misrepresentations in its IPO and proposed merger with TMTG. It has agreed to a cease-and-desist order and an $18 million penalty if the merger closes.
The SEC's fraud charges and the potential $18 million penalty could negatively impact DWAC's stock price in the short term. The cease-and-desist order could also affect the company's operations and its proposed merger with TMTG.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100