Accusations of Impropriety and Sabotage Rock the Road to a Multi-Billion Dollar Merger, Involving Donald Trump and Digital World Acquisition Corp.

SARASOTA COUNTY, Florida – Accusations of impropriety and sabotage have surfaced in a lawsuit filed in Sarasota County, revealing the turbulent path to a potentially lucrative merger that could earn Donald Trump over $3 billion. Shareholders recently voted in favor of a merger between Trump Media & Technology Group (TMTG) and Digital World Acquisition Corp. (DWAC), the parent company of social media platform Truth Social. With the merger’s approval, TMTG, located in Sarasota, Florida, is set to begin trading on the Nasdaq stock market. This development comes at a time when Trump faces significant legal fines amounting to over $500 million.

The road to the merger has been fraught with challenges, including investigations by the Securities and Exchange Commission and the U.S. Department of Justice, resulting in delays. Given the approaching 2024 election, Friday’s merger vote held critical importance for Trump’s financial portfolio.

In response to the complexities surrounding the merger, DWAC and TMTG have filed a lawsuit in Sarasota County Court against Arc Global Investments II LLC and Miami businessman Patrick Orlando. This suit is one of four lawsuits involving Trump’s media company filed across the country.

The lawsuit alleges various wrongdoings, including Orlando’s “blatant shakedown extortion effort” to leverage his ability to prevent the merger and maximize his stake, potentially worth $222 million in stock. It also accuses Orlando of attempting to convince shareholders to vote against the merger.

DWAC, as a special purpose acquisition company (SPAC), was created to acquire an existing targeted company. Established on December 11, 2020, DWAC selected TMTG as its merger target. TMTG, in turn, was formed two months after Trump’s ban from Twitter for his involvement in the events of January 6.

The lawsuit further reveals that Orlando, the CEO of DWAC until his removal by the board in March 2023, still holds a position on the DWAC board. According to the lawsuit, he refuses to resign unless provided with shares and stock options potentially valued at $222 million. However, the merger’s closing condition mandates Orlando’s resignation.

The problems surrounding the merger began in October 2021 when DWAC and TMTG announced their merger agreement. Subsequently, investigations by the Securities and Exchange Commission and the Department of Justice unveiled Orlando’s desire for the merger, despite SPACs’ prohibition from having premeditated merger targets.

As a result of these investigations, DWAC reached a settlement of $18 million with the SEC to be paid upon the merger’s completion. Additionally, the lawsuit highlights that shareholders incurred an extra $10 million in legal fees and damage to the brand’s reputation during the investigation process.

The lawsuit portrays Orlando’s behavior as “reckless and irrational,” citing leaked merger details, the storage of invoices and contracts in his personal email account, and the resignation of the company’s auditor. Furthermore, the suit alleges that Orlando discouraged investments in revenge for being fired from his CEO position.

The conflict between Trump’s company and Orlando, taking place within the SPAC framework, could significantly impact Trump’s wealth. This development signifies a noteworthy turnaround from 2021, when Orlando penned a complimentary birthday letter to Trump, praising his brilliance.

As the legal battle unfolds, the outcome will shape Trump’s financial prospects and further reveal the intricacies of the merger process.