**Trump Media Experiences Executive Departure and Stock Release Amidst Ongoing Legal Disputes**
In a recent regulatory filing, Trump Media revealed that its Chief Operating Officer, Andrew Northwall, has resigned from his position, effective late September. The company did not provide a reason for his departure but stated that it would be transitioning his duties internally.
In the same filing, Trump Media disclosed that it would be releasing nearly 800,000 shares of its common stock to ARC Global Investments II, an early investor, in accordance with a recent court order. The shares, valued at approximately $12.7 million based on Thursday’s closing price, are part of a disputed stock-conversion ratio related to Trump Media’s merger with Digital World Acquisition Corp. (DWAC).
The legal dispute, which began in mid-September, centered around competing claims about the number of Class A shares owed to ARC following the merger. Delaware Chancery Court Judge Lori Will ruled in favor of ARC, stating that DWAC’s proposed stock-conversion ratio was too low and that ARC was entitled to more shares.
Trump Media noted that the judge also rejected ARC’s proposed ratio, which was significantly higher. Nevertheless, the company will release 785,825 shares of its common stock to ARC as a result of the court’s order.
The news comes amidst ongoing legal troubles for Trump Media, including a lawsuit filed by the Securities and Exchange Commission (SEC) against Patrick Orlando, the investor behind ARC. The SEC accuses Orlando of lying in public securities filings about DWAC’s merger plans with Trump Media and is seeking civil penalties and a permanent injunction.
Trump Media, which operates the social media platform Truth Social, is majority-owned by former President Donald Trump, who holds nearly 57% of the company’s stock, valued at approximately $1.9 billion.
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