Trump Media sued by co-founders over claims of stake dilution before merger
• Trump Media & Technology Group (TMTG) sued by co-founders Andy Litinsky and Wes Moss, who allege Trump is trying to "drastically dilute" their minority stake in the company • Lawsuit comes right before planned merger between TMTG and Digital World Acquisition Corp (DWAC), which would make TMTG a publicly traded company • Co-founders claim there is no legitimate reason for TMTG's board to approve an 8-fold increase in authorized shares other than to dilute their stake from 8.6% to less than 1% • SEC recently cleared regulatory hurdles for proposed TMTG/DWAC merger, DWAC shareholders scheduled to vote on deal on March 22 • DWAC aware of potential lawsuit and said in an SEC filing that if claims involve issuing more shares, settlement could have "material adverse effect" from monetary and dilutive impact