Digital World board members get subpoena over Trump's social media deal

[June 27, 2022]  (Reuters) - Blank-check firm Digital World Acquisition Corp said on Monday each of its board directors had received subpoenas from federal prosecutors over the company's merger plans with former U.S President Donald Trump's social media firm.  

Former U.S. President Donald Trump speaks to an audience at the "American Freedom Tour" event in Memphis, Tennessee, U.S., June 18, 2022. REUTERS/Karen Pulfer Focht/File Photo

Earlier this month, the company reported that the U.S Securities and Exchange Commision (SEC) and the Financial Industry Regulatory Authority probing the deal had also sought more information.

Trump Media and Technology Group (TMTG) and Digital World Acquisition Corp said in October last year, they would merge to create a social media app called TRUTH Social.

Shares of Digital World Acquisition fell 6% in premarket trading after the company said in a regulatory filing that it became aware that a federal grand jury in the Southern District of New York has issued subpoenas to its board of directors.

The latest subpoenas sought the same documents as the SEC probe as well as requests relating to the company's S-1 filings, communications with or about multiple individuals, according to the filing.

On June 24, Digital World received a grand jury subpoena with substantially similar requests, it added.

(Reporting by Eva Mathews in Bengaluru; Editing by Shinjini Ganguli)

[© 2022 Thomson Reuters. All rights reserved.]
This material may not be published, broadcast, rewritten or redistributed.  Thompson Reuters is solely responsible for this content.