Things have not been entirely smooth sailing for Donald Trump’s Truth Social platform since its long-awaited merger was approved in late March. A flurry of legal activity has swirled around the company, and Truth Social’s stock plummeted this week after it reported disappointing financial numbers from last year.
Here’s what has happened since the Truth Social merger on March 22:
- Trump sued two of Truth Social’s co-founders (and former “Apprentice” contestants) Andy Litinsky and Wes Moss on March 24, alleging that they don’t deserve a stake in the company because they had mismanaged the platform. Litinsky and Moss sued the former president in February, accusing him of trying to “drastically dilute” the value of their shares. Trump is set to be deposed in that case on April 15.
- Two men in Florida pleaded guilty on Wednesday to participating in insider trading over Digital World Acquisition Corp.’s merger with Trump Media & Technology Group, Truth Social’s parent company.
- An investigation by The Guardian revealed that Truth Social had been propped up in 2022 by emergency loans from a Russian-American businessman who is the subject of a federal criminal investigation. (Neither Trump nor Trump Media is accused of wrongdoing.)
- Truth Social shares plummeted 21% on Monday after Trump Media reported a net loss of $58.2 million on $4.1 million in revenue in 2023. Axios calculated that Trump’s stake in the company fell from $4.89 billion to $3.84 billion after the share price fell. An independent accounting firm filed a report that raised “substantial doubt about its ability to continue as a going concern.” CNBC reports that its stock price has yet to rebound.
Meanwhile, Trump has characterized skeptics of Truth Social’s outlook as “Radical Left Democrats.” He defended Truth Social in lengthy posts on the platform on Thursday morning, boasting about his influence on the website:
“Look, using TRUTH, I became the Republican Nominee for President of the United States, and in record time! When I ENDORSE a politician on TRUTH, they almost ALWAYS WIN. If it didn’t work, or properly get the word out, I wouldn’t use it — But it does work, and work really well — And the fun is just getting started!!!”
Trump’s claim about his stellar track record on endorsements is questionable. But his rate of success in business throughout the years, at least, is clearer.
