WP: Trump Media co-founders sue company, alleging a scheme to dilute shares

[skinsmarydu]

Just now, PleaseBlitz said:

 

Pretty sure he just owns a cow. 

I just almost choked on a Cheez-It cracker...

[China]

Truth Social owner Trump Media asks Congress to investigate ‘troubling’ market manipulation claims

 

Trump Media & Technology Group is asking Congress to investigate its suspicions that illegal activity is driving down its share price.

 

In a letter disclosed on Wednesday, Devin Nunes, the CEO of Truth Social owner Trump Media (DJT), alerted the GOP Chairmen of the House Ways and Means, Judiciary, Financial Services and Oversight Committees to the “urgent matter” of “potential manipulation” of the company’s share price.

 

“We assess there are strong indications of unlawful manipulation of DJT stock,” Nunes wrote in the letter.

 

Nunes, himself a former Republican congressman from California, pointed to how Trump Media has been among the most expensive stocks to borrow. Traders who wish to short a stock, or bet the value will go down, must borrow shares elsewhere first.

 

Nunes suggested there are signs of “naked” short selling, which involves someone selling shares they don’t own or have not borrowed.

 

However, some experts expressed skepticism about the claims of market manipulation.

 

“It does not appear that there is any evidence that these allegations are true,” Jonathan Macey, a professor at Yale Law School, told CNN in an email.

 

Jay Ritter, a finance professor at the University of Florida, said there are more obvious explanations for why some traders are betting against Trump Media.

 

“The reason that short sellers want to short the stock is because the stock is overvalued,” said Jay Ritter, a finance professor at the University of Florida. “It does not require a PhD in finance to come to the conclusion that the stock is wildly overvalued and is almost certain to fall in price.”

 

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