The board of directors of Digital World Acquisition Corp. were subpoenaed by a federal grand jury in New York.
The truth social is on the phone.
The company disclosed in an SEC filing that a federal grand jury in the Southern District of New York issued subpoenas.
The SEC launched a probe in December over claims that the blank check company had conversations with Trump Media and Technology Group before going public.
The subpoenas seek some of the same documents the SEC asked for in its investigation as well as requests related to communications with several individuals.
Bruce Garelick, chief strategy officer at Rocket One Capital, resigned from the board.
The SEC has an important mission of protecting retail investors.
In October of last year, Trump announced plans to create his own social media site to compete with the liberals. Following the January 6 insurrection, he was banned from several major platforms. After the initial merger announcement, DWAC traded as high as $175 per share, but fell after the SEC began an investigation. Multiple outlets reported that Trump had met with the DWAC chief executive before the company went public. SEC rules prevent SPACs from identifying a target company before they raise money. The SEC expanded its probe earlier this month, seeking communications about and due diligence of potential targets other than TMTG. The launch of Truth Social has been plagued by technological problems and the resignation of top executives. At the end of April, Trump started posting regularly.
The shares of DWAC fell in April after it was reported that Musk had been approved by the board of directors to take the company private. Trump has proposed Truth Social as a free speech alternative to social media sites, but Musk has criticized the practices of social media sites and has indicated he will make changes if his deal goes through.
Subpoenas were issued to the directors of SPAC.
The Truth Social SPAC was down more than 9% after reports of a deal with Musk.
All Rights Reserved © 2024
