(MENAFN) The firm that plans to acquire Donald Trump's new social networking company has revealed a federal grand jury probe that it claims might stymie or even prohibit its acquisition of the Truth Social app.
Shares of Digital World Acquisition Corp. fell about 10% on Monday after the business said that it had received subpoenas from a grand jury in New York.
The Justice Department subpoenas come in the wake of an ongoing Securities and Exchange Commission investigation into whether Digital World violated rules by holding substantial talks about buying Trump's company beginning early last year before selling stock to the public for the first time in September, just weeks before its announcement that it would buy Trump's company.
Trump's social media endeavor debuted in February, a year after he was barred from Twitter, Facebook, and YouTube. He is looking for a new digital platform to rally his fans and battle Big Tech's speech restrictions.
The Trump Media & Technology Group, which runs the Truth Social app and is being bought by Digital World, asserted in an announcement that it will comply with “oversight that supports the SEC’s important mission of protecting retail investors.”
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