(Reuters) – Blankcheck company Digital World Acquisition Corp. said on Friday that former US President Donald Trump’s social media company received two separate lawsuits over its merger plans.
The development comes days after Digital World said that each of its boards has received lawsuits from federal prosecutors over the SPAC agreement with Trump Media & Technology Group, the creator of the social media platform Truth Social.
Blankcheck said on Friday that TMTG had received lawsuits from the U.S. Securities and Exchange Commission and a federal grand jury in the southern district of New York, adding that federal prosecutors were seeking the same documents from TMTG that they had asked Digital World and its directors for.
“The Trump Media & Technology Group will continue to cooperate fully with requests for our planned merger and will follow the lawsuits we have recently received, none of which were directed at the company̵
7;s chairman or CEO,” the company said in a statement on Friday.TMTG agreed to merge with Digital World in October and the deal was expected to close in the second half of this year. The latest developments may delay or stop the deal.
The US Securities and Exchange Commission and the Financial Industry Regulatory Authority have been investigating the deal since the end of last year. Last month, Digital World said the SEC was also seeking more information.
Some current and former TMTG members also recently received individual lawsuits from the grand jury, according to the blank check company.
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