The parent company for former President Donald Trump’s Truth Social platform is asking Congress to investigate the SEC, alleging regulators there have engaged in “egregious conduct and blatant politicization” to delay the social media platform’s potential merger with Digital World Acquisition.
The SEC has been reviewing the S4 plan submitted in fall 2021 by Digital World Acquisition to merge with Trump Media & Technology Group, which owns the Truth Social platform, reports Just the News.
“America’s cherished free speech tradition is under unprecedented attack by Big Tech companies working hand-in-glove with censorious government agencies, powerful media outlets and well-connected political operatives,” Scott Glabe, the general counsel at Trump Media & Technology, wrote in a letter to the Republican chairmen of the House Judiciary, Oversight and Financial Service Committees.
The SEC’s investigation of the deal includes, among other things, inquiries as to whether the SPAC before its IPO held any merger discussions with Trump’s company, which would be illegal.
Some of the PIPE investors on the deal back in September pulled out $138.5 million. Investors in the PIPE were free to walk away from the deal after the SPAC failed to close the merger with Trump Media & Technology Group by the original Sept. 20 deadline. The SPAC has since secured shareholder approval to extend its deadline until September of this year. Read more.
