Latest News

Elizabeth Warren Seeks SEC Probe Into How Trump Landed SPAC Deal


(Bloomberg) — Donald Trump’s bid to recapture his social media presence is facing scrutiny from Senator Elizabeth Warren over reports that the blank-check company merger the former president used to raise millions of dollars may have skirted securities rules.

Most Read from Bloomberg

Startup Fever Is Gripping the World’s Last Big Untapped Nation

A Denser City, But at What Cost?

An Oil Company Went Up in Flames, Burning Lenders and the Planet

Hong Kong’s New Museum Tries to Please Art World — and Beijing

Elizabeth Holmes Faces Last-Ditch Chance to Testify at Trial

Warren, a constant adversary of Trump’s when he occupied the White House, wants the Securities and Exchange Commission to investigate whether October’s merger between Trump Media and Technology Group and Digital World Acquisition Corp. was in the works long before the special purpose acquisition company sold shares.

The Massachusetts Democrat said she’s concerned that Digital World’s chief executive officer may have held talks with Trump months ago — discussions that weren’t disclosed to potential investors.

“DWAC’s failure to disclose these talks during the process appears to be an omission of material information necessary for both early institutional investors and retail investors in the SPAC’s public offering,” she said in a Wednesday letter to SEC Chair Gary Gensler.

Warren cited a New York Times report that Digital World had communicated with Trump’s firm as early as March, while stating in securities filings that the SPAC had no specific acquisition target in mind. SPACs like Digital World aren’t supposed to pursue deals until after they go public. The alleged omission enriched Digital World’s sponsors and Trump Media, while “trapping retail investors in a stock bubble,” Warren said in an accompanying statement.

An SEC spokesperson declined to comment. Spokespeople for Trump Media and Digital World didn’t immediately respond to requests for comment.

Most Read from Bloomberg Businessweek

How Child Care Became the Most Broken Business in America

Boeing Built an Unsafe Plane, and Blamed the Pilots When It Crashed

First Task for the Teamsters’ Next Boss: Take On UPS

Google Wants to Save the Planet With Satellite Images

Generation Lockdown: Where Youth Unemployment Has Surged

©2021 Bloomberg L.P.

Liberty Media’s John Malone says he tried to buy Netflix when it was trading at a mere $8 per share

Previous article

Think Rivian Stock Is Volatile Now? Dec. 6 Could Bring Big Moves.

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News