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- Trump's media company is suing its cofounders, alleging they failed the business before its SPAC deal.
- The suit says Wesley Moss and Andrew Litinsky worked with others to cause "significant damage."
- It comes weeks after a company Litinsky and Moss founded filed its own suit against TMTG.
Trump Media is suing its cofounders, alleging they failed the company and did "significant damage" to its business, according to documents filed in a Florida civil court.
The suit, which was filed on March 24, says three executives within Trump's media empire attempted to "thwart" a merger with Digital World Acquisition Corp., a special-purpose acquisition company intended to take Trump Media public.
That merger has gone through successfully — but the lawsuit says Wesley Moss and Andrew Litinsky, Trump Media's cofounders, made "reckless" decisions leading up to the deal that harmed the company, which was "aided" by former Digital World Acquisition Corp. CEO Patrick Orlando.
The suit also accuses United Atlantic Ventures of causing damage, a separate company Moss and Litinsky founded that secured them 8.6 million shares in Trump Media.
"TMTG has been forced to file this action to remedy the harm inflicted upon by two faithless fiduciaries and a company they own — Wesley Moss, Andrew Litinsky, and UAV — and to halt their ongoing attempts to do even more damage," the court documents say.
Moss and Litinsky had the potential to "profit handsomely" if Trump Media completed its merger deal. But the executives instead proposed a merger with Orlando's Benessere Capital Acquisition Corp., a company that "was hardly the best merger candidate," the documents say.
Later, Moss and Litinsky also voted against Trump Media's merger with DWAC at a shareholder meeting.
The filing says: "Moss and Litinsky failed spectacularly at every turn. They failed to get the corporate governance established. They made a series of reckless and wasteful decisions ... that caused significant damage to TMTG and a decline in the stock price of its merger partner. Only after 2022, when a new CEO and a duly constituted Board of Directors was put in place to manage the Company with due care and in good faith, was the Company able to remedy Moss's and Litinsky's mismanagement."
The suit from Trump Media comes just a few weeks after United Atlantic Ventures filed its own suit against TMTG, which proposed to block the company's merger with DWAC and claimed that TMTG executives were attempting to deprive them of shares.
Trump Media did not immediately respond to a request for comment.
Correction: April 3, 2024 — An earlier version of this story included an outdated photo caption. It has been updated.