Admin note: This story has been edited to include proper sourcing, as required by The Rules of the Road.
Within days of the public offering of Trump Media, Trump has filed suit against the the managers of the company, Wes Moss and Andy Litinsky, asserting that their incompetent mismanagement was so bad that they should be stripped of their shares in the company. This coincides with a report by The Guardian that a Russian-American who has been accused of money laundering was the source of funds necessary to prop up this entity prior to the public offering. In addition, the company’s auditors have issued a “going concern” opinion, meaning in their professional judgment Trump Media shows a real risk of financial collapse, and was in that state when the public offering occurred.
All of these problems appear to be so serious that they should have been disclosed to potential investors before the public offering. Plaintiffs lawyers are going to have a field day suing Trump and the Trump Media organization for not making such a disclosure before Trump’s MAGA supporters shelled out part of their life savings to buy into their icon’s media “empire”.
When the inevitable lawsuits are filed, how is Trump possibly going to defend himself against his own lawsuit against Messrs. Moss and Litinsky claiming management incompetence? It is astounding that his counsel would not consider that these allegations by Trump could concurrently be admissions of stock fraud by Trump because they were not disclosed as part of the public offering. But then, at this point it is obvious that the quality of the Trump legal team proves the old maxim “you get what you pay for”, or in Trump’s case, you don’t. It’s probably only a matter of days before Trump finds himself the defendant in at least one more another lawsuit, since plaintiffs lawyers are going to race to the courthouse so their cases are the first ones filed. The only question is whether yet another prosecutor is going to decide Trump’s undisclosed allegations of manager incompetence will rise to the level of criminal stock fraud.