Former "Apprentice" contestants Andy Litinsky and Wes Moss, the founders of United Atlantic Ventures (UAV), have taken legal action against Trump Media and Technology Group, the parent company of Truth Social, a social media platform associated with President Donald Trump. The lawsuit, filed in the Delaware Court of Chancery, accuses Trump's media venture of attempting to dilute Litinsky and Moss's stakes in the company amidst a potential merger.

 

Litinsky and Moss claim that when they presented the media startup concept to the former president, it was agreed that Trump would receive a 90% stake in the company. In exchange for their efforts in launching the venture, Litinsky, Moss, and a legal representative involved in the deal were promised the remaining 10% stake without any additional compensation.

 

However, according to the lawsuit, Trump Media recently sought to significantly reduce UAV's interests by expanding the authorized stock from 120 million shares to one billion shares. The proposed move, described as "11th hour, pre-merger corporate maneuvering," aimed to allocate new shares to Trump and/or his associates and children, thereby diminishing UAV's stake from 8.6% to less than 1%.

 

Trump Media has yet to respond to requests for comment regarding the allegations.

 

Litinsky and Moss initially approached Trump with the idea for a Trump-branded media venture in 2021, following Trump's removal from Twitter. Despite their departure from Trump Media, Litinsky and Moss still retain ownership shares in the company.

 

Meanwhile, Trump Media has been entangled in a protracted merger attempt with Digital World Acquisition Corp (DWAC), a special purpose acquisition company. The merger, announced over two years ago, has faced numerous delays, partly due to an ongoing Securities and Exchange Commission investigation into potential securities violations.

 

DWAC shareholders recently granted Trump Media a 12-month extension to finalize the merger, providing the company with $300 million raised from its shareholders for the purpose of the merger. The potential merger, speculated to be worth $4 billion according to The New York Times, could offer President Trump a significant financial boost, particularly as he faces a substantial payment of over $450 million to the state of New York following a civil fraud ruling.

 

The lawsuit filed by UAV suggests that Trump's rush to expand his stock holdings may be linked to the impending merger, which could serve as a critical liquidity event for Trump amid his financial obligations.

 

The next DWAC shareholder vote on the Trump Media merger is scheduled for March 22, adding further anticipation to the unfolding legal and financial saga surrounding Trump's media endeavors.