Trump Media And Technology Group (DJT) Found Liable For Breach Of Contract
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In recent days, the media at large has been laser-focused on the imminent removal of Trump's share lock-up restrictions, which would allow him to start dumping Trump Media and Technology Group (NASDAQ: DJT) shares worth billions of dollars, should the former US President so desire. Another development, however, has emerged today to attract investors' eyeballs.
Trump Media And Technology Group's Legal Wranglings With Arc Global
For the benefit of those who might not be aware, Trump Media and Technology Group recently became a public entity by undergoing a reverse merger with the SPAC Digital World (DWAC).
Related Story Trump Media And Technology Group’s Revenue Plunges 30 Percent In Q2 2024 On A Net Loss Of $16 Million
In the pre-merger phase, Arc Global had filed a lawsuit against Digital World in the Delaware Court of Chancery, alleging that the SPAC's then-CEO, Eric Swider, and three other board members had miscalculated Arc’s stake in a manner that would deprive it of over 2 million shares in the post-merger setup. Arc Global had taken particular umbrage with the ratio at which its Class B DWAC shares were to be converted into Class A Trump Media shares.
In response, Digital World had lashed out against its former CEO, Patrick Orlando, and the sponsor Arc Global Investments II, alleging that Orlando had threatened to block the proposed merger between DWAC and Trump Media to "obtain a windfall by way of extortion."
Now, the Delaware Chancery Court Judge Lori Will has found Trump Media and Technology Group liable for breach of contract vis-a-vis its dealings with Arc Global. The judge, however, has rejected Arc Global's breach of fiduciary duty claims against Trump Media.
Additionally, Judge Lori Will has ordered that Arc Global's stake in Trump Media and Technology Group would now be converted at a ratio of 1.4911, which is
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