Trump Media & Technology Group: Legal Dispute with Ex-Apprentice Contestants and Suspected Market Manipulation Allegations

New York, New York, USA United States of America
Company trying to prevent sale, claims poor decision-making contributed to merger delay.
Ex-contestants sue company for depriving them of full share value.
Moss and Litinsky hold approximately 8% stake worth over $220 million each.
Trump Media suspected of market manipulation, illegal naked short selling driving down share price.
Trump Media & Technology Group embroiled in legal dispute with ex-Apprentice contestants Wes Moss and Andy Litinsky over share sale.
Trump Media & Technology Group: Legal Dispute with Ex-Apprentice Contestants and Suspected Market Manipulation Allegations

Trump Media & Technology Group, the parent company of Truth Social, has been embroiled in a legal dispute with two ex-contestants from The Apprentice over their stake in the company. Wes Moss and Andy Litinsky helped launch Truth Social and currently hold an approximately 8% stake in Trump Media & Technology Group. However, the company is trying to prevent them from selling their shares, claiming that their poor decision-making contributed to a years-long delay in its merger with Digital World Acquisition Corporation. Moss and Litinsky have sued the company, alleging that it is trying to deprive them of the full value of their shares. The pair's stake is worth over $220 million based on the current share price, while Donald Trump's stake is worth $2 billion.

In addition to this legal dispute, Trump Media has also raised concerns about suspected market manipulation. The company suspects that illegal naked short selling is driving down the price of its shares and has alerted Nasdaq Inc. of its suspicions. CEO Devin Nunes believes that this practice involves someone selling shares they don't own or have not borrowed, which is generally illegal. Trump Media's shares are on a list maintained by Nasdaq that is indicative of unlawful trading activity.

Trump Media & Technology Group, whose flagship product is Truth Social, recently went public and began trading on the Nasdaq stock market. Donald Trump owns most of the combined company, which could be worth nearly $3 billion based on Digital World's closing stock price. Truth Social had roughly 5 million active users in February according to research firm Similarweb.

Once public, Trump Media will be required to report quarterly finances and other material news to federal regulators. The company lost $58 million in 2023 and made just $4.1 million in revenue. Shares of the company were up slightly on Friday after the letter was made public.

Despite recent gains, experts caution against investing in Trump Media, stating that it is a risky and expensive bet for investors. The company has faced criticism for its lack of fundamentals to back up its sky-high valuation. Nonetheless, small shareholders remain optimistic about the future of the company and believe that free speech and Truth will win out in the end.


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Confidence

85%

Doubts
  • Is the company's claim that poor decision-making by Moss and Litinsky a valid reason to prevent them from selling their shares?
  • What evidence does Trump Media have of suspected market manipulation?

Sources

97%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Trump Media warns Nasdaq of suspected market manipulation

CNN News Site: In-Depth Reporting and Analysis with Some Financial Conflicts and Sensational Language Elisabeth Buchwald Friday, 19 April 2024 13:58
  • Unique Points
    • Trump Media suspects illegal naked short selling is driving down the price of its shares
    • CEO Devin Nunes believes this practice is 'naked' short selling, where someone sells shares they don’t own or have not borrowed
    • Nasdaq maintains a list of indicative unlawful trading activity and Trump Media’s shares are on it
  • Accuracy
    • Trump Media provided instructions on Wednesday to make short-selling of their shares more difficult.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

80%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Trump Media shares surge after a miserable run. Pros say stay away

National Public Radio (NPR) Rafael Nam Thursday, 18 April 2024 00:00
  • Unique Points
    • Shares in Trump Media & Technology Group surged 26% on Thursday and 15% on Wednesday.
    • Truth Social app is the company behind Trump Media & Technology Group.
    • DJT is the stock symbol for Trump Media & Technology Group.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (30%)
    The author uses emotional manipulation by quoting and highlighting the optimism of small shareholders who are holding onto their Trump Media stocks despite the company's poor performance. The author also selectively reports information by only mentioning the recent gains in Trump Media shares without providing context about their overall decline since their debut. Additionally, there is a lie by omission as the author fails to mention that these recent gains may be due to insider trading or other manipulative activities.
    • In a couple years I will be really rich or really broke. I chose to believe that free speech and Truth will win out in the end.
    • It's only a matter of time where they become disillusioned.
    • Shares of Trump Media & Technology Group surged 26% on Thursday, marking a second consecutive day of strong gains.
  • Fallacies (75%)
    The article contains an appeal to authority and a potential false authority. The author cites 'experts' without specifying who they are, which is vague and could mislead readers. Additionally, there is an example of inflammatory rhetoric with the phrase 'painful rollercoaster of a ride'.
    • . . .professional investors cautioned the outlook was not good for Trump Media...
    • It's only a matter of time where they become disillusioned.
    • In a couple years I will be really rich or really broke. I chose to believe that free speech and Truth will win out in the end.
    • Shares of Trump Media & Technology Group surged 26% on Thursday, marking a second consecutive day of strong gains.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

94%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Trump's social media company approved to go public, potentially netting former president billions

The Associated Press News Friday, 22 March 2024 04:01
  • Unique Points
    • Donald Trump’s media company, Truth Social, is approved to go public and will soon begin trading on the Nasdaq stock market.
    • Trump owns most of the combined company, which could be worth nearly $3 billion based on Digital World’s closing stock price.
    • Truth Social had roughly 5 million active users in February according to research firm Similarweb.
    • Once public, Truth Social will be required to report quarterly finances and other material news to federal regulators.
  • Accuracy
    • Shares in Trump Media & Technology Group surged 26% on Thursday and 15% on Wednesday.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (85%)
    The article contains several informal fallacies and an appeal to authority. The author uses inflammatory rhetoric when describing the investors of Digital World as 'small-time investors who are either fans of Trump or trying to cash in on the mania.' This is a hasty generalization, as not all small-time investors fit this description. Additionally, the author quotes an unnamed source stating that 'Trump would be entitled to vote in his own interest as a controlling stockholder – which may not always be in the interests of all shareholders.' This is an appeal to authority fallacy, as the author does not provide any evidence or reasoning to support this claim. The score is 85 because there are no formal fallacies present and only a few instances of informal fallacies and appeals to authority.
    • ]Small-time investors who are either fans of Trump or trying to cash in on the mania[/
    • Trump would be entitled to vote in his own interest as a controlling stockholder – which may not always be in the interests of all shareholders[/
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (0%)
    None Found At Time Of Publication

98%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Legal Fight Over Trump Media’s Ownership Adds to Its Woes

The Name Of The NZ Prefix. I PWA NZI.P.Was Dropped. Matthew Goldstein, Thursday, 18 April 2024 09:04
  • Unique Points
    • Two ex-contestants on The Apprentice, Wes Moss and Andy Litinsky, helped launch Donald Trump’s social media platform, Truth Social, with his blessing.
    • Trump Media & Technology Group and Moss & Litinsky are currently in a legal dispute over their approximately 8% stake in the company.
    • The ex-contestants sued Trump Media claiming that the company was trying to deprive them of the full value of their shares and prevent them from selling those shares.
    • Trump Media claimed that Moss & Litinsky should forfeit their shares because their poor decision-making contributed to a years-long delay in its merger with Digital World Acquisition Corporation.
    • The pair’s stake is worth more than $220 million based on the current $26 share price of Trump Media, compared to $2 billion for Donald Trump.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication