Delaware Court Rules Trump Media Must Compensate Ousted DWAC CEO Orlando with Shares

Keywords ;Trump Media, DWAC, Truth Social, Delaware court, Patrick Orlando, insider shares

Trump Media Ordered to Compensate Former DWAC CEO Patrick Orlando

Former Digital World Acquisition Corp. (DWAC) CEO Patrick Orlando has secured a court ruling entitling him to more than half a million shares of Trump Media & Technology Group (TMTG), following his ousting prior to the SPAC merger’s completion earlier this year.

Background

Orlando played a pivotal role as CEO of the blank-check company DWAC, which facilitated Trump Media’s public listing. The Delaware court determined that TMTG breached its agreement with Orlando’s investment vehicle, ARC Global Investments, by failing to deliver additional shares as agreed upon.

In September, the court mandated that the shares be transferred before the lock-up period on insider sales expires, ensuring Orlando’s ARC Global receives fair compensation.

Trump Media Ownership

Donald Trump, the U.S. President-elect, remains the largest stakeholder in TMTG, holding nearly 115 million shares, which account for approximately 53% of the company. TMTG owns and operates Truth Social, a social media platform launched to compete with mainstream tech platforms.

Key Implications

• Investor Sentiment: The court’s decision highlights governance challenges surrounding SPACs and high-profile deals, potentially affecting investor confidence in similar arrangements.
• Trump Media Valuation: The share transfer could marginally dilute existing stakes, though its impact on TMTG’s market valuation remains uncertain.
• Orlando’s Role: The ruling serves as a significant victory for Orlando, underscoring protections for SPAC stakeholders even after their removal from leadership roles.

The lock-up expiration, anticipated next year, could mark a critical juncture for insider activity, with key shareholders, including Trump, gaining the option to sell their stakes. Investors are closely monitoring developments around Truth Social’s growth and Trump Media’s financial performance.

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