Truth Social owner Trump Media sues two of its own co-founders, seeking to wipe out their shares

CNN
 — 

Trump Media & Technology Group, the Truth Social owner controlled by former President Donald Trump, recently filed a lawsuit against two of its co-founders seeking to eliminate their stakes in the multi-billion dollar company.

The lawsuit marks the latest twist in the legal saga surrounding the quest to bring Trump Media and Truth Social public — a deal that has spiked Trump’s net worth and created a frenzy on Wall Street.

Trump Media filed a lawsuit on March 24 in Florida state court against Andy Litinsky and Wes Moss, two co-founders of Trump Media. That lawsuit alleges they made a series of “reckless and wasteful decisions” when they tried to set up the company that caused significant damage.

“Moss and Litinsky failed spectacularly at every turn,” the lawsuit said.

Lawyers representing United Atlantic Ventures — the company through which Litinsky and Moss do business — declined to comment.

The lawsuit, first reported by Bloomberg News, asks the court to force Litinsky and Moss to return their stake in the company.

The lawsuit states that Litinsky and Moss were to receive 8.6 million shares in the new company, through United Atlantic Ventures. At Tuesday’s closing price of $51.60, that stake is worth about $444 million.

Litinsky and Moss, through United Atlantic Ventures, had previously filed their own lawsuit in Delaware against Trump, arguing the former president was planning to dilute their stake in the new company.

Trump owns 78.8 million shares in Trump Media, which went public last week. That stake is valued at about $4.1 billion, up by $228 million from this Monday’s closing price.

– CNN’s Ramishah Maruf contributed to this report