Donald Trump’s Post May Have Just Broken the Law

Details

Publish Date:

April 8, 2024

Author(s):

Fabino, Alexander

Source:

Newsweek

Related Person(s):

Related Organization(s):

Stanford Securities Litigation Analytics (SSLA),
John M. Olin Program in Law and Economics,
Arthur and Toni Rembe Rock Center for Corporate Governance

Summary

Trump’s portrayal of the financial windfall as inherent to Truth Social rather than a lifeline from DWAC, coupled with the fact that he said his follower count is growing fast, paints a misleading picture of the company’s standalone viability and could influence investor perception under false pretenses, Klausner told Newsweek on Monday.

“A false statement of ‘material’ information is securities fraud,” Klausner said while warning it could be a case of “pumping.”