A Delaware judge on Tuesday approved a request by attorneys representing Donald Trump as well as Trump Media & Technology Group, the parent company of his Truth Social platform, to delay a lawsuit filed by two co-founders of the company.
Delaware Judge Rejects Request to Fast-Track Claim in Trump Media Case
According to AP News, Vice Chancellor Morgan Zurn expressed her opinion that Andrew Litinsky and Wesley Moss, who were previously contestants on Trump's TV show 'The Apprentice,' did not provide sufficient justification for expediting certain claims in their lawsuit for court rulings.
Litinsky along with Moss filed a lawsuit in February alleging that Trump Media intended to diminish their ownership in the company through a merger that made it publicly traded in late March.
Another judge has agreed to expedite the lawsuit due to the upcoming merger date. Nevertheless, the plaintiffs' worries regarding the potential dilution of their limited liability company's stake in Trump Media were dismissed when defense attorneys reassured the judge that the LLC, United Atlantic Ventures, would not experience any dilution as a result of the merger.
After the merger, UAV submitted a second amended complaint alleging that Trump and other defendants had imposed a "lock up" provision, which restricted UAV from selling its shares in the public company for a period of six months.
Both parties made a strong case for keeping the proceedings on the fast track, emphasizing the potential harm they would face if they were forced to wait six months to sell their shares.
Trump Media's Post-Merger Lawsuit
Zurn mentioned that UAV was informed about the lockup provision on Feb. 12 due to a filing made that day with the Securities and Exchange Commission. Afterwards, two additional SEC filings were made to document the lockup provision.
UAV also requested Zurn to expedite arguments regarding its request for an "anti-suit injunction" to prevent Trump Media from pursuing a lawsuit in Florida against UAV, The Independent reported.
The lawsuit claims that, due to alleged mismanagement before the merger, UAV is not entitled to own shares in the newly public Trump Media company.
The Florida lawsuit also questions UAV's claim of having the authority to appoint two directors to the Trump Media board.
Trump Media's attorneys assert that the Florida lawsuit is not in violation of the Delaware court order, as UAV did indeed receive its post-merger shares.
In addition, it has been stated that the venue provision does not extend to Trump Media and Technology Group.
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