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Board members sued over Trump’s agreement on social media



(Reuters) – Blankcheck company Digital World Acquisition Corp. said on Monday that each of its board members had received lawsuits from federal prosecutors regarding the company’s merger plans with former President Donald Trump’s social media company.

The federal investigation is the latest setback for Mr. Trump’s efforts to make Trump Media & Technology Group Corp., the creator of the social media platform Truth Social, public. In October, TMTG agreed to merge with Digital World and expected the deal to be completed during the second half of this year.

Shares in Digital World fell 6% in pre-market trading after the company said in a regulatory announcement that it became aware that a federal grand jury in the southern district of New York had issued subpoenas to its directors.

The company had seven board members on April 1

3, including CEO Patrick Orlando and CFO Luis Orleans-Braganza.

On June 24, a lawsuit was also sent by the grand jury to the company, Digital Worlds’ application showed.

Earlier this month, the company reported that the US Securities and Exchange Commission and the Financial Industry Regulatory Authority, which have been investigating their deal with TMTG since the end of last year, had also sought more information.

Digital World also said that Bruce Garelick, chief strategy officer for Rocket One Capital, a Miami-based investment firm, is resigning from the board. Some of the information that the grand jury requested was about communication with Rocket One.


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