NEW YORK–(BUSINESS WIRE)–#Acquisition–Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against Digital World Acquisition Corp. (“Digital World” or the “Company”) (NASDAQ: DWAC) on behalf of Digital World stockholders. Our investigation concerns whether Digital World has violated the federal securities laws and/or engaged in other unlawful business practices.
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On October 29, 2021, The New York Times published an article entitled “Trump’s $300 Million SPAC Deal May Have Skirted Securities Laws.” The article reported that Donald J. Trump’s efforts to take Trump Media & Technology Group (“TMTG”) public via a merger with Digital World, a special purpose acquisition company (“SPAC”), involved discussions of a merger with Digital World’s founder before Digital World itself went public. These discussions may have violated federal securities laws, which prohibit SPACs from planning mergers before conducting their initial public offerings.
On this news, Digital World’s stock fell $6.93 per share, or 10.23%, to close at $60.82 per share on November 1, 2021.
Then, on June 13, 2022, Digital World stated in a filing with the U.S. Securities and Exchange Commission that “[a]s previously disclosed in Digital World’s quarterly report on Form 10-Q for the period ended March 31, 2022 and other filings with the SEC, Digital World received a document request and subpoena from the SEC seeking various documents and information regarding, among other things, meetings of Digital World board of directors; communications with and the evaluation of potential targets, including TMTG; communications relating to TMTG; agreements with and payments made to certain advisors; investors, including investor meetings and agreements; the appointment of certain of Digital World’s officers and directors; policies and procedures relating to trading; and documents sufficient to identify banking, telephone, and email addresses. The SEC also recently issued an order of examination pursuant to Section 8(e) of the Securities Act, with respect to the Registration Statement relating to the Business Combination, and a further subpoena in support thereof.”
On this news, Digital World’s stock price fell $10.71 per share, or 28.18%, to close at $27.30 per share on June 14, 2022.
If you purchased or otherwise acquired Digital World shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at firstname.lastname@example.org, by telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.