Former President Donald Trump’s Truth Social company is taking 20 news media organizations to court. The company is seeking $1.5 billion in damages for a news story claiming Truth Social had lost $73 million since its launch.
The report first surfaced last week in paperwork related to Truth Social’s upcoming merger with Digital World Acquisition Corp, a move that is intended to help the company go public.
A Nov. 13 Securities and Exchange Commission (SEC) filing gave a glimpse into Truth Social’s financial health. The disclosure, filed by Trump Media & Technology Group, did not illustrate a $73 million loss.
“This number was an utter fabrication,” the lawsuit states. “Each defendant, in apparent coordination, reported the exact same false number within approximately 24 hours of one another, each citing to a public Securities and Exchange Commission filing, in which the mystery $73 million loss appears nowhere.”
According to the SEC filing, since the platform’s first launch in 2021 to mid-2023, Truth Social has a reported net loss of $31.5 million.
That number is less than half of what was reported by media outlets, including MSNBC, Reuters, The Daily Mail, The Guardian, CNBC and several other outlets named in the suit.
Trump’s media company said the negative publicity spooked investors.
“As a result of these widespread lies, TRUMP MEDIA (TMTG) has suffered actual damages,” the lawsuit states. “Committed and potential investors have reacted negatively to the false news of TMTG supposedly losing $73 million, and TMTG’s ability to raise additional capital has been impaired.”
“To the Fake News outlets that think themselves above accountability: we’ll see you in court,” the official Truth Social account posted to the platform.
According to the lawsuit, Truth Social reached out to each news organization that ran the original story, asking for a retraction and apology. At least nine of the 20 outlets have updated or corrected their original reporting.
While Truth Social’s losses are not as high as first reported, the SEC filing does reveal little cash on hand and no substantial ad revenue coming in.
Digital World Acquisition Corp said in the filing that Truth Social may not survive.
