Digital World Acquisition, the SPAC planning to merge with Trump Media & Technology Group, owner of the Truth Social platform, has now walked away from two years of financial statements after informing the Securities and Exchange Commission that its audited financials for 2021 “should no longer be relied upon.”
In May, Digital World issued a similar notice to the SEC regarding its financial statements for the year ending Dec. 31, 2022.
The retractions began after Digital World’s management, audit committee and advisors concluded that an error mandated reissuing the company’s audited financial statements. Digital World’s filings don’t identify the mistake, but say it is indicative of “a material weakness” in the company’s “internal control over financial reporting,” and that “the company’s disclosure controls and procedures were not effective.”
Digital World plans to reissue the financial statements and also share a plan to address the issues. It did not provide a time frame, Forbes reports.
The deal with Trump’s company was announced two years ago this month. It’s been fraught ever since with drama, executive reshuffling and regulatory investigations, as well as criminal charges against some of the SPAC investors. Digital World was also slapped with an $18 million fine by the SEC for “misleading investors.” Read more.
