Former President Donald Trump’s social media outfit, Truth Social, is locked in a bitter battle with one of its vendors claiming that the platform is stiffing the company out of more than $1 million in contractually obligated payments, FOX Business reports.
Trump’s company is in a SPAC merger agreement with Digital World Acquisition. Both companies are under investigation by federal regulators looking at the unusual timing of heavy trading activity in the SPAC’s warrants, among other issues — including whether the SPAC held talks with Trump’s company before conducting an IPO, which would be illegal.
If the latest allegations about financial problems are true, they would suggest that Truth Social’s finances are in significant disarray, people with direct knowledge of the matter told Fox. Internet infrastructure company RightForge is said to be among Truth Social’s largest vendors and creditors, the sources say.
In October, RightForge announced it entered into an agreement to host Truth Social, which Trump helped create after he was banned by Twitter following the Jan. 6 riots at the US Capitol. RightForge now contends that Truth Social has reneged on its contractually obligated monthly payments for setting up the platform’s web-servicing infrastructure, according to three people with direct knowledge of the matter.
These people say RightForge contends that Truth Social has made just three payments and ceased making any payments since around March. RightForge claims that Truth Social owes it around $1.6 million and is threatening legal action to recoup the money.
Digital World Acquisition, meanwhile, is asking shareholders to extend its deadline on the deal until September 2023. Read more.
