Federal prosecutors are investigating the company behind former US President Donald Trump’s Truth Social platform to determine if the company or its managers have violated federal laws.
Shares of the special purpose acquisition company known as Digital World Acquisition Corporation fell 9 percent in early trading on Monday after CEO Patrick Orlando filed with the Securities and Exchange Commission to say the company, which is seeking the merger with Trump Group Former president’s media and technology subpoena is issued by a federal grand jury in the Southern District of New York.
Orlando said the subpoenas appear to be “looking for various documents and information” very similar to the subpoenas the Securities and Exchange Commission issued to the company earlier this year, as well as documents related to previous filings by the company with the SEC. .
The U.S. Securities and Exchange Commission is investigating whether company executives violated laws prohibiting negotiations between the company and Trump’s tech company prior to the announcement of a deal between the two companies in late 2021.
The company’s shares rose more than 400% after Trump announced the deal.
Source: The Independent