Trump-Led SPAC Gets SEC Settlement Over Misleading Investors
Portfolio Pulse from Chris Katje
The merger between Donald Trump’s Trump Media & Technology Group and Digital World Acquisition Corporation (DWAC) has faced several delays. The U.S. Securities and Exchange Commission (SEC) has settled fraud charges against DWAC for misleading investors by failing to disclose prior discussions to acquire the Trump-led media company. The SEC and DWAC agreed on an $18 million penalty if the merger closes and a cease-and-desist order. DWAC shares are up 27.02% to $16.91 in after-hours trading.
July 20, 2023 | 9:58 pm
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DWAC has settled fraud charges with the SEC over misleading investors about its merger with Trump's media group. An $18 million penalty will be imposed if the merger closes. DWAC shares are up 27.02% in after-hours trading.
The news of the settlement of fraud charges by the SEC is significant for DWAC as it removes a major regulatory hurdle for the company. This could potentially accelerate the merger process with Trump's media group, which is likely why the stock price has increased in after-hours trading. However, the $18 million penalty if the merger closes could impact the company's financials.
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