Delaware judge refuses to fast-track certain claims in post-merger lawsuit against Trump Media
A Delaware judge has granted a request by attorneys for Donald Trump and Trump Media & Technology Group, parent company of his Truth Social platform, to slow down a merger-related lawsuit filed by two cofounders of the company
DOVER, Del. — A Delaware judge on Tuesday granted a request by attorneys for Donald Trump and Trump Media & Technology Group, parent company of his Truth Social platform, to slow down a lawsuit filed by two cofounders of the company.
Vice Chancellor Morgan Zurn said Andrew Litinsky and Wesley Moss, former contestants on Trump’s TV show, “The Apprentice,” failed to justify putting certain claims in their lawsuit on a fast track for court rulings.
Litinsky and Moss filed a lawsuit in February claiming that Trump Media planned to dilute their stake in the company as part of a merger that took it public in late March. A different judge agreed to fast-track that lawsuit given the impending merger date. However, the plaintiffs’ concerns about their limited liability company’s 8.6% stake in Trump Media being diluted were mooted when defense attorneys assured the judge that the LLC, United Atlantic Ventures, would suffer no merger-related dilution.
Following the merger, UAV filed a second amended complaint claiming that Trump and other defendants improperly imposed a “lock up” provision preventing UAV from selling its shares in the public company for six months. They simultaneously argued that the case should remain on the fast track because they would be harmed if they have to wait six months to sell their shares.
Zurn noted that UAV was on notice about the lockup provision on Feb. 12 as the result of a filing that day with the Securities and Exchange Commission. That was followed by two other SEC
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