Trump Faces Threat to Key Financial Support

Legal Battle Shakes Trump's Business Empire Foundations

by Zain ul Abedin
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Trump Faces Threat to Key Financial Support
© Win McNamee/Getty Images

In a significant development that could impact Donald Trump's financial future, a proposed merger poised to inject billions into the former president's coffers is now facing legal hurdles. This complication arises as Trump, a key figure in the Republican party, contends with a lawsuit from partners involved in his digital venture.

Earlier in the month, the Securities and Exchange Commission greenlit a merger between Trump Media & Technology Group (TMTG) - the parent company of Trump's social media outlet, Truth Social - and Digital World Acquisition Corp.

This deal, if successful, could endow Trump with close to $4 billion, granting him ownership of over half of the newly merged entity's shares. However, this financial windfall is now under threat. Allegations have surfaced from TMTG's co-founders, who accuse Trump and other executives of attempting to unjustly diminish their shareholdings through a controversial stock redistribution.

These claims, outlined in a legal document filed in Delaware's Chancery Court, were brought to light by United Atlantic Ventures (UAV), a partnership spearheaded by Andy Litinsky and Wes Moss. Despite attempts, the original court documentation remains elusive to Newsweek, prompting a request for comment from Trump's representative, which has yet to be answered.

The merger, initially unveiled in October 2021, has encountered numerous delays. Just last September, stakeholders in Digital World sanctioned an extension, allowing up to an additional year to finalize the agreement.

Merger's Financial Stakes

Experts suggest that if the merger faces further impediments, it could severely restrict Trump's ability to address his escalating legal expenses.

According to Todd Landman, a Political Science professor at the University of Nottingham, the merger's failure could significantly impede Trump's financial relief, especially during a period marked by a pressing need for liquidity.

The litigation stakes are high for UAV, which holds an 8.6% interest in TMTG. The partnership has voiced concerns over proposals to dramatically increase the company's share count, which would dilute its stake. Additionally alarming are plans permitting Trump to allocate his shares to family or a trust, especially in light of over $500 million in civil judgments against him.

As Trump grapples with multiple legal challenges, the outcome of this merger - and its potential to provide a crucial financial lifeline - remains uncertain. Last month, Trump was ordered to pay substantial damages and interest for fraud, with another recent verdict mandating compensation to E.

Jean Carroll for defamatory statements. Trump continues to deny any wrongdoing, appealing both verdicts as he navigates these tumultuous legal and financial waters.

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