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A Delaware judge has found Trump Media & Technology Group legally responsible for breaching an agreement with ARC Global, ordering Trump Media to deliver a larger portion of stock to ARC Global, according to CNBC.
The Delaware Court of Chancery determined that Patrick Orlando, the former CEO of blank-check firm Digital World Acquisition (DWAC) — the company that merged with Trump Media & Technology Group in March to take it public — had miscalculated the direct amount of stock that was due to ARC Global, as part of the Trump Media merger. Outside of that decision, the judge Vice Chancellor Lori Will didn’t agree with ARC on all of its claims, some of which she called “meritless” diversions.
The ruling comes just three days before the investor, ARC Global, and others including owner Donald Trump, will be free to start selling their shares.
Once investors start selling their portions of the stock, it could further plummet the level of confidence in Trump Media. So far, the stock has fallen significantly, losing billions of dollars in its value.
Shares of Trump Media were down by 6.6% as of Tuesday’s closing, trading at $16.14.
Trump owns about 57% of the company’s outstanding stock and has previously stated that he has “absolutely no intention of selling” his share. The Republican presidential candidate stands to make upward of $2 billion from the stock sale. However, the value of those returns depends on the share price.
