A Delaware judge has approved a request by attorneys representing Donald Trump and Trump Media & Technology Group to delay a lawsuit brought by two cofounders of the company. The lawsuit was filed by Andrew Litinsky and Wesley Moss, former contestants on Trump's TV show, 'The Apprentice.'
The lawsuit, filed in February, alleged that Trump Media intended to dilute Litinsky and Moss's stake in the company as part of a merger that made it public in late March. Initially, a different judge had fast-tracked the lawsuit due to the impending merger date. However, concerns about the stake dilution were addressed when defense attorneys assured the court that there would be no merger-related dilution.
Following the merger, Litinsky and Moss filed a second amended complaint, claiming that Trump and other defendants had imposed a 'lock-up' provision preventing them from selling their shares in the public company for six months. They argued that the case should remain on the fast track due to the potential harm caused by the delay in selling their shares.
Vice Chancellor Morgan Zurn noted that Litinsky and Moss were aware of the lock-up provision as early as February 12 through SEC filings. Despite this, Litinsky and Moss sought to expedite arguments on an 'anti-suit injunction' to prevent Trump Media from pursuing a lawsuit in Florida. The Florida lawsuit challenges UAV's ownership rights in the newly public Trump Media company and disputes UAV's claim to appoint directors to the board.
Attorneys for Trump Media contend that the Florida lawsuit does not violate the Delaware court order, as UAV received its post-merger shares. They also argue that the venue provision does not apply to Trump Media & Technology Group. While Judge Zurn expressed reluctance to expedite arguments on the venue provision and governing law, she emphasized the need for a rapid hearing on whether the Florida lawsuit violated the court order issued in Delaware on March 15.
