Digital World board members receive subpoena over Trump’s social media deal

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June 27 (Reuters) – Blank check firm Digital World Acquisition Corp (DWAC.O) said on Monday that each of its board directors had received subpoenas from federal prosecutors relating to the company’s merger plans. company with former US President Donald Trump’s social media company.

The federal investigation is the latest setback in Trump’s efforts to go public with Trump Media & Technology Group Corp (TMTG), the creator of social media platform Truth Social. In October, TMTG agreed to merge with Digital World and expected the deal to close by the second half of this year. Read more

Digital World shares fell 6% in premarket trading after the company said in a regulatory filing that it learned that a federal grand jury in the Southern District of New York had issued subpoenas to its administrators.

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The company had seven directors on its board as of April 13, including chief executive Patrick Orlando and chief financial officer Luis Orleans-Braganza.

On June 24, a grand jury subpoena was also served on the company, the Digital World filing showed.

Earlier this month, the company reported that the U.S. Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority, which have been investigating its deal with TMTG since late last year, also requested more information. Read more

The latest subpoenas to Digital World targeted the same documents as the SEC’s investigation as well as requests relating to the company’s S-1 documents.

Digital World also said Bruce Garelick, chief strategy officer of Rocket One Capital, a Miami-based investment firm, is stepping down from the board. Some of the information requested by the grand jury related to communications with Rocket One.

Michael Shvartsman, founder and CEO of Rocket One Capital, did not immediately respond to a Reuters request for comment.

“Will cooperate with oversight that supports the SEC’s important mission to protect retail investors,” TMTG said.

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Reporting by Eva Mathews in Bengaluru; Editing by Shinjini Ganguli

Our standards: The Thomson Reuters Trust Principles.

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