Federal regulators are pouring over a complaint by a former executive at Truth Social’s parent company, alleging Trump Media & Technology Group violated securities laws.
“It’s serious. It’s not a good idea to be on the wrong side of a securities law violation,” said Michael Klausner, a law professor at Stanford University.
The complaint also said Trump Media tried to raise capital by making fraudulent misrepresentations about the company’s finances.
“Ultimately, with respect again to the securities laws, this would all have to be disclosed,” Klausner said.Read More