Trump sues media outlets for $1.5B over 'false reporting'
20 media outlets include Newsweek, Hollywood Reporter, and CNBC.
The Trump Media & Technology Group (TMTG) has filed a lawsuit against 20 media outlets over reports of a $73 million loss since the launch of Truth Social.
The Trump Media & Technology Group (TMTG) has launched a lawsuit against 20 media outlets, including Newsweek, Hollywood Reporter, and CNBC. The crux of the matter revolves around reports alleging that TMTG suffered a $73 million loss since the launch of Truth Social, a social media platform owned by former President Donald Trump.
TMTG vehemently denies these claims, describing them as "an utter fabrication." Lawyers for the organization argue that the reports represent an "unprecedented and seemingly coordinated media campaign" aimed at damaging TMTG's reputation and disrupting its financial standing, particularly concerning its anticipated merger with Digital World Acquisition Corporation (DWAC).
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The coordinated effort, as alleged by TMTG, has raised eyebrows, with the media outlets all reporting the same false number within a remarkably short timeframe. The company contends that this media campaign is a deliberate attempt to jeopardize the merger between DWAC and TMTG, a deal that has faced numerous delays.
DWAC's scepticism about TMTG's financial health was evident in a recent SEC filing, citing doubts about TMTG's ability to meet liabilities. The merger, originally planned in October 2021, has faced setbacks, with a new deadline set for December 31, 2023.
Despite the legal turmoil, the financial details disclosed in the SEC filing indicate Truth Social's struggle. In 2022, the platform recorded an operating loss of $23 million and net sales of $1.4 million. The first half of 2023 showed an operating loss of $7.6 million, with net sales of $2.3 million. Since its inception, TMTG has recorded a total net loss of $31.5 million until June 30, 2023.
The legal battle is not only a fight for reputation but also a bid for financial stability. With damages sought at $1.5 billion and injunctive relief demanded to prevent further publication of defamatory statements, the lawsuit underscores the high stakes involved.
