The lawsuit filed by Donald Trump against the co-founders of Trump Media & Technology Group highlights significant internal governance issues and failed merger efforts, which are critical factors that investors consider. These issues, coupled with the reported financial losses, are likely to negatively impact investor confidence and the stock price in the short term. The 21% drop in stock price following the announcement of the $58 million loss and minimal revenue for 2023 further supports the expectation of a negative short-term impact on the stock.