Reported Earlier, 'Trump Media Co-founders Sue Company, Alleging A Scheme To Dilute Shares' - The Washington Post
Portfolio Pulse from Benzinga Newsdesk
Co-founders of Trump Media, Andy Litinsky and Wes Moss, have filed a lawsuit against the company and Donald Trump, alleging a scheme to dilute their shares. This legal action could impact the planned merger between Trump Media & Technology Group, owner of Truth Social, and Digital World Acquisition Corp (DWAC), potentially delaying or preventing the deal. The merger is significant for Trump, potentially valuing his stake at over $3 billion. The dispute centers around an attempt to increase authorized stock, which the co-founders argue dilutes their stake unjustly.
February 29, 2024 | 6:01 pm
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Digital World Acquisition Corp (DWAC) faces potential delays or prevention of its merger with Trump Media due to a lawsuit filed by the company's co-founders. This legal dispute could negatively impact investor confidence and the future performance of DWAC.
The lawsuit filed by the co-founders of Trump Media against the company and Donald Trump alleges a scheme to dilute their shares, directly impacting the planned merger with DWAC. This legal dispute introduces significant uncertainty around the merger's completion, which could lead to delays or prevention of the deal. Given the merger's importance for DWAC's future performance and investor confidence, this news is likely to have a negative short-term impact on DWAC's stock price.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90