Trump Media & Technology Group, the business owner of social networking site Truth Social, had its shares fall Thursday after former President Donald Trump was found guilty in his hush money trial.
Trump Media Stock Plummets 9% After Guilty Verdict
A New York jury has reached a verdict, finding Trump guilty of falsifying business records. The charges stem from allegations of a scheme to unlawfully influence the 2016 election by making hush money payments to a porn actor who claimed to have had a sexual encounter with Trump.
Following two days of deliberations, the jury of 12 members reached a verdict, finding Trump guilty on all 34 counts, Reuters reported.
The presiding judge, Justice Juan Merchan, has scheduled the sentencing for July 11, just a few days before the Republican National Convention is set to begin on July 15, where Trump is expected to be officially nominated for president.
The stock of Trump Media experienced a significant decrease of approximately 9% during after-hours trading on Thursday, following the release of the verdict. The stock price reduction would result in a $532 million decrease in the value of Trump's shares.
Trump Media Reports $327.6M Loss, Blames DWAC Merger Expenses
During the three-month period that concluded on March 31, the company reported a loss of $327.6 million. This loss was attributed to $311 million in non-cash expenses associated with its merger with Digital World Acquisition Corp.
DWAC exemplified a special purpose acquisition company, or SPAC, which offers young companies expedited and simplified paths to public trading for their shares, albeit with reduced scrutiny.
Trump Media & Technology terminated an auditor this month who was recently accused by federal regulators of engaging in "massive fraud."
According to AP, the media company terminated its relationship with BF Borgers as its independent public accounting firm on May 3, resulting in a delay in the filing of its quarterly earnings report.
The auditors at Trump Media have gone through a series of changes. One auditor resigned in July 2023, and another was terminated by the board in March. This happened around the same time that BF Borgers was being rehired.
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