SEC Slaps DWAC with Fraud Charge Over Undisclosed Trump Media Acquisition Plans
The SEC has charged SPAC Digital World Acquisition Corporation (NASDAQ: DWAC) with fraud over its planned merger with Donald Trump’s social media company, Trump Media & Technology Group (TMTG).
The SEC alleged that Nasdaq-listed DWAC had failed to disclose to investors and securities regulators its intent to acquire TMTG prior to going public in 2021. According to SEC Division of Enforcement Director Gurbir S. Grewal, such nondisclosure is especially concerning in the case of SPACs because investors rely on information about the SPAC’s management and potential merger targets to make financial decisions.
TMTG, headquartered in Palm Beach, Florida, operates the social media platform Truth Social. The merger with DWAC has faced difficulties due to insufficient shareholder support. If the merger is completed, DWAC will pay an $18 million penalty as per the SEC’s announcement.
Information for this briefing was found via the SEC and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
