Truth Social takes media outlets to court for misreporting the company’s losses

[KARAH RUCKER]

FORMER PRESIDENT DONALD TRUMP’S TRUTH SOCIAL COMPANY IS TAKING 20 NEWS MEDIA ORGANIZATIONS TO COURT.

THE COMPANY IS SEEKING 1.5 BILLION DOLLARS IN DAMAGES FOR A NEWS STORY REPORTED BY DOZENS OF NEWS OUTLETS THAT CLAIMED TRUTH SOCIAL HAD LOST 73 MILLION DOLLARS SINCE ITS LAUNCH.

SOMETHING SOME OF THE OUTLETS HAVE SINCE GONE BACK AND CORRECTED, GIVEN THAT NUMBER IS OFF BY TENS OF MILLIONS OF DOLLARS.

THE REPORT FIRST SURFACED LAST WEEK IN PAPERWORK RELATED TO TRUTH SOCIAL’S UPCOMING MERGER IN A MOVE THAT WILL HELP THE COMPANY GO PUBLIC.

AN SEC FILING FROM NOVEMBER 13TH GAVE A GLIMPSE INTO TRUTH SOCIAL’S FINANCIAL HEALTH FOR THE VERY FIRST TIME.

THE DISCLOSURE WAS ROBUST AND CONTAINED A LOT OF NUMBERS, BUT NOWHERE DID IT ILLUSTRATE A $73 MILLION LOSS. 

THE LAWSUIT STATES 

“THIS NUMBER WAS AN UTTER FABRICATION. EACH DEFENDANT, IN APPARENT COORDINATION, REPORTED THE EXACT SAME FALSE NUMBER WITHIN APPROXIMATELY 24 HOURS OF ONE ANOTHER, EACH CITING TO A PUBLIC SECURITIES AND EXCHANGE COMMISSION FILING, IN WHICH THE MYSTERY $73 MILLION LOSS APPEARS NOWHERE.”

ACCORDING TO THE SEC FILING, SINCE THE PLATFORM’S FIRST LAUNCH IN 2021 TO MID 2023, TRUTH SOCIAL HAS A REPORTED A NET LOSS OF 31.5 MILLION DOLLARS.

THAT’S LESS THAN HALF OF WHAT WAS REPORTED BY MEDIA OUTLETS LIKE MSNBC, REUTERS, THE DAILY MAIL, THE GUARDIAN, CNBC, AND A LIST OF OTHER OUTLETS NAMED IN THE SUIT.

BECAUSE OF THE INACCURATE AND WIDESPREAD REPORT, TRUMP’S MEDIA COMPANY SAYS THE NEGATIVE PUBLICITY SPOOKED INVESTORS. 

THE LAWSUIT STATES –

“As a result of these widespread lies, TRUMP MEDIA (TMTG) has suffered actual damages. Committed and potential investors have reacted negatively to the false news of TMTG supposedly losing $73 million, and TMTG’s ability to raise additional capital has been impaired.”

A TRUTH SOCIAL POST READ –

“TO THE FAKE NEWS OUTLETS THAT THINK THEMSELVES ABOVE ACCOUNTABILITY: WE’LL SEE YOU IN COURT.”

ACCORDING TO THE LAWSUIT, TRUTH SOCIAL REACHED OUT TO EACH NEWS ORGANIZATION WHO RAN THE ORIGINAL STORY ASKING FOR A RETRACTION AND APOLOGY.

AT LEAST NINE OF THE 20 OUTLETS HAVE UPDATED OR CORRECTED THEIR ORIGINAL REPORTING.

WHILE TRUTH SOCIAL’S LOSSES ARE NOT AS LARGE AS FIRST REPORTED, THE SEC FILING DOES POINT TO LITTLE CASH ON HAND – AND NO SUBSTANTIAL AD REVENUE COMING IN.

THE COMPANY LOOKING TO POTENTIALLY MERGE WITH TRUMP MEDIA – SAID IN THE FILING – WITHOUT THE MERGE – TRUTH SOCIAL MAY NOT SURVIVE.