A board member of Trump Media & Technology Corp DJT, the parent company of Truth Social, has been implicated in a hacking lawsuit. The lawsuit was filed in the Southern District of Florida.
What Happened: According to a report by WIRED, Eric Swider, a board member of Trump Media and ex-CEO of Digital World Acquisition Corp (DWAC), is alleged to have been part of a corporate coup aimed at removing Patrick Orlando, the original architect of the deal to take Truth Social public. The lawsuit was initiated by Benessere Investment Group, a company under Orlando’s control.
Swider, who held the position of DWAC CEO from March 2023 to March 2024, is accused of conspiring to oust Orlando. The lawsuit alleges that Swider and others unlawfully accessed Benessere and ARC II’s computer systems and files, using the stolen information to target Benessere and ARC II’s managing member, Patrick Orlando.
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The lawsuit further alleges that Swider recruited Alexander Cano, Orlando’s former personal assistant, to improperly access a protected electronic storage account containing Orlando’s confidential files. Cano is alleged to have then passed the “stolen information” to Swider.
This lawsuit adds to the growing list of legal disputes involving Truth Social, DWAC, and former President Donald Trump. Despite reporting just over $4 million in revenue in 2023, the company, which went public last month, is valued at over $5 billion.
Benzinga has contacted Truth Social for clarification on the report. We will update the article as soon as we receive a response.
Why It Matters: This lawsuit comes amidst a series of legal and financial challenges for Truth Social and its parent company. Earlier this year, Trump Media & Technology Group was involved in a legal dispute with the co-founders of Truth Social. In March 2024, experts urged caution regarding the hype surrounding Truth Social’s public debut.
Despite the criticism, the company’s merger with DWAC was expected to increase Trump’s wealth by $3 billion, leading some to label DWAC as a “meme stock on steroids“. However, the company faced further scrutiny in April 2024 when its CEO had to defend its financial position amidst criticism over its profitability.
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