Two former company leaders behind the Truth Social merger are caught up in a complicated legal fight over hacking claims. The former CEO of Digital World Acquisition Corp. is accusing his replacement of staging a 'coup d'état' against him.
Legal Dispute Between Former DWAC Executives
A legal dispute unfolding between two former executives of the company responsible for purchasing Donald Trump's Truth Social platform, as reported by Wired.
The former CEO of Digital World Acquisition Corp. (DWAC), the entity formed to acquire Trump's media venture, is taking legal action against his replacement.
He alleges that his successor gained unauthorized access to his personal accounts in what he characterizes as a "coup d'état," indicating a significant internal conflict within the company's leadership. As of now, things have gotten messy.
Patrick Orlando, who was DWAC's CEO until March 2023, claims he got pushed out by Eric Swider, a board member at Trump Media. Swider then took over as CEO until this March. Orlando filed a lawsuit against Swider through the Benessere Investment Group, a company he runs.
Following Orlando's termination, the lawsuit alleges that Swider recruited his former personal assistant, Alexander Cano, to help improperly access Orlando's accounts.
Cano is said to have gained access to an electronic storage account linked to Benessere and ARC Global Investments II, another fund Orlando managed. The account held login details for Orlando's Mailchimp and DocuSign accounts and confidential files. The suit asserts that Cano provided this "stolen information" to Swider.
Communication Strategy, Investor Concerns
Following Orlando's firing, the lawsuit alleges that Swider utilized Orlando's Mailchimp account to email ARC II's investors about the Truth Social deal.
Swider also organized Zoom calls for investors to discuss potential risks associated with the leadership decisions that Swider claimed were leading to misinformation, concealed information, and self-dealing.
Swider expressed concern about the consequences of Orlando's actions, suggesting that Orlando's leadership had led to investigations by regulatory bodies and potential financial losses for the company and its stakeholders.
Additionally, Swider organized Zoom meetings for investors to discuss perceived risks associated with what he described as misleading information, concealed facts, and self-serving behavior within the leadership.
Also read : Trump's Social Media Company Which Runs Truth Social Debuts on Nasdaq, Valued at a Whopping $6.8 Billion
Orlando's time at DWAC faced significant challenges. The merger plans between Trump Media and DWAC experienced prolonged delays, partly attributed to investigations by the Securities and Exchange Commission and federal criminal authorities.
The delays in finalizing the merger between Trump Media and DWAC were not without consequences. CNBC reported in 2023 that these delays had a significant financial impact, resulting in DWAC experiencing losses of approximately $100 million.
Despite these setbacks, the merger with Truth Social was ultimately successfully completed in March of the current year, marking a significant milestone for both companies involved.
