In this article we’ll take a look at Dan Primack, a business editor at Axios. He’s no longer employed at the site, but you can still learn a lot from his work.
Investors could file fraud lawsuits if Trump returns to Twitter
One thing that is not disputed is that President Donald Trump is taking on Twitter in court. Whether or not he wins, he has promised to keep his followers happy by sticking to his own social media site, Truth Social. The company owes money to a vendor and is having a tough time making ends meet.
While the Trump Media & Technology Group is locked into an agreement with Digital World Acquisition Corp. (DWAC), Mr Trump has not decided whether or not to withdraw his appeal of the May ruling. If he does, he will have to contend with a plethora of new legal challenges to his social media savvy.
While the company has had to face a series of court battles, it has also had to make do with a number of notable lawsuits filed by Trump supporters and conservative organizations. In a new filing, a group of eight men were indicted on charges of conspiracy to commit securities fraud relating to a social media-based “pump and dump” scheme.
DWAC shareholders might file fraud lawsuits if Trump returns to Twitter
The Trump Media & Technology Group (TMTG) is a privately held media company. It’s owned by Donald Trump, the former president.
The company has been plagued with challenges seeking advertising from major companies. This led to a federal grand jury in New York subpoenaing its board of directors.
The company is facing serious legal and financial issues. In December, the Securities and Exchange Commission (SEC) opened an investigation into DWAC’s finances and practices.
The company has received letters from the SEC and the Financial Industry Regulatory Authority (FINRA) requesting more information. The federal regulators want to know what communication happened around DWAC and its affiliates. They’re also interested in trading activity and how DWAC has raised money.
The deal was initially announced in October, and the company has until next Thursday, December 8, to complete the merger. However, the company wants to extend the deadline. Shareholders will vote on a charter amendment to extend the deadline by six months. If DWAC shareholders approve the extension, the company will need to close within seven months, according to its filing with the SEC.
Dan Primack has no position in any companies mentioned in this article.
Dan Primack, the business editor for Axios, writes a daily newsletter that covers mergers and acquisitions, private equity and venture capital. He previously worked at Fortune Magazine and Reuters. His latest newsletter focuses on mergers and acquisitions. Previously, he was the chief executive of a popular email newsletter.
One of his articles in Fortune magazine is a report on confidential Bain Capital documents. The documents outline the company’s plans to raise a large fund to buy real estate. In return, Adam Neumann would be given super voting shares and would step down as an executive chairman. Other investors, including Warren Buffett, gave money to the IPO. This was something that had never been widely reported.
In a separate article, Matt Taibbi wrote that Bain Capital was creating no value for the company, and that it was in fact a corporate raider. But then again, he also accused Mitt Romney of being a corporate raider. And while the deal fell apart, the company is still a real business with real buildings.