Trump Media co-founders Andy Litinsky, Wes Moss sue to keep stake in company

Legal Tussle in Trump Media Empire

Background: Co-Founders’ Legal Battle Over Ownership Stakes

In a high-stakes legal drama that could shake the foundations of the Trump Media & Technology Group (TMTG), co-founders Andy Litinsky and Wes Moss have initiated a lawsuit alleging manipulative tactics to reduce their ownership interest. This contentious battle not only brings venture capital and equity concerns to the forefront but also threatens to delay the much-anticipated public offering of TMTG, impacting shareholders and former President Donald Trump’s future financial prospects.

Problem Identification: The Dilution Dilemma

The Alleged Scheme: A Question of Fair Value

The dispute centers on a purported scheme where existing shareholders’ stakes, particularly those of United Atlantic Ventures (UAV), Litinsky and Moss’s partnership, are at risk of significant dilution. This move could potentially reduce their 8.6 percent holding, worth an estimated $339 million, to less than 1 percent, if the company’s number of authorized shares surges from 120 million to 1 billion.