Truth Social is exactly what the title suggests. It’s a dumpster fire. I’m going to speak to two examples of this. Starting with infighting within the company that’s led to a lawsuit:
The media company that Donald Trump recently took public is suing its co-founders, accusing them of failing “spectacularly” to get the company off the ground and then trying to “thwart the deal.”
The lawsuit filed in Sarasota County, Florida, civil court seeks to bar Trump Media & Technology Group co-founders Wesley Moss and Andrew Litinsky from appointing members to the company’s board — or from owning any of its shares.
Moss and Litinsky claim that a 2021 agreement that Trump signed with a company they founded, United Atlantic Ventures, LLC, guarantees them an 8.6% share of Trump Media’s total stock, undiluted by the issuance of new shares.
At DJT’s closing price Tuesday, that share would be worth about $601 million.
In February, Moss and Litinsky sued Trump Media in Delaware Chancery Court over their stake in the company.
The Florida lawsuit was filed in late March, around the same time that shareholders in the shell company Digital World Acquisition Corp. voted to approve a merger with Trump Media, a private company behind the fledgling social media app Truth Social.
Following the special purpose merger, stock in the newly public Trump Media began trading under the ticker DJT and shot up by as much as 50% in its Nasdaq debut last week.
But the share price fell sharply Monday, after the company disclosed a $58.2 million net loss in 2023.
Trump Media’s lawsuit wants the court to award it damages for what it claims are Moss and Litinsky’s “breaches of fiduciary duty.”
In addition to Moss and Litinsky, the lawsuit names DWAC founder Patrick Orlando a co-defendant, accusing him of being involved in those breaches.
Moss and Litinsky were responsible for establishing Trump Media’s corporate governance structure, preparing the launch of Truth Social and finding a shell company for a merger to take the media company public, the lawsuit says.
This is kind of comical and illustrates the kind of chaos that exists at this company. And based on this latest event, one wonders if there will ever be a positive outcome that will result in everyone making money. My guess is not, but I am free to be proven wrong on that front.
Speaking of money. There’s a report in The Guardian that suggests that Truth Social was financially floated by someone who will raise eyebrows:
Donald Trump’s social media company Trump Media managed to go public last week only after it had been kept afloat in 2022 by emergency loans provided in part by a Russian-American businessman under scrutiny in a federal insider-trading and money-laundering investigation.
The former US president stands to gain billions of dollars – his stake is currently valued at about $4bn – from the merger between Trump Media and Technology Group and the blank-check company Digital World Acquisition Corporation, which took the parent company of Truth Social public.
But Trump Media almost did not make it to the merger after regulators opened a securities investigation into the merger in 2021 and caused the company to burn through cash at an extraordinary rate as it waited to get the green light for its stock market debut.
The situation led Trump Media to take emergency loans, including from an entity called ES Family Trust, which opened an account with Paxum Bank, a small bank registered on the Caribbean island of Dominica that is best known for providing financial services to the porn industry.
Through leaked documents, the Guardian has learned that ES Family Trust operated like a shell company for a Russian-American businessman named Anton Postolnikov, who co-owns Paxum Bank and has been a subject of a years-long joint federal criminal investigation by the FBI and the Department of Homeland Security (DHS) into the Trump Media merger.
The existence of the trust has previously been reported by the Guardian and the Washington Post. However, who controlled the account, how the trust was connected to Paxum Bank, and how the money had been funneled through the trust to Trump Media was unknown.
The new details about the trust are drawn from documents including: Paxum Bank records showing Postolnikov having access to the trust’s account, the papers that created the trust showing as its settlor a lawyer in St Petersburg, Russia, and three years of the trust’s financial transactions.
That all sounds more than a little suspect to say the least. I honestly wouldn’t be surprised that at some point, a three letter federal agency starts executing search warrants and/or arresting people. Which in turn will likely cause Truth Social to crash and burn.
We seriously live in strange times at the moment.
Tips and information from Nikon Canada: How to Prepare for The Solar Eclipse
Posted in Commentary with tags Nikon on April 5, 2024 by itnerdWith parts of Canada in the path of Monday’s solar eclipse, many are excited to photograph and/or record it. However, there are important steps you need to take in order to properly protect your equipment, as well as your eyes.
Nikon Canada has a two-part video series available that includes all you need to know to properly (and safely) capture this exciting event:
How to Prepare for The Solar Eclipse – Part 1:
In this video, Nathan from Nikon will show you what kind of lenses, filter, and other accessories you will need to capture the eclipse.
*Please note there is an option for French captioning for this video under Settings.
A few important considerations from Nikon Canada:
You can find additional resources on how to record the eclipse on Nikon.ca here: https://en.nikon.ca/learn-and-explore/s/solar+eclipse.html
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