SARASOTA, FLORIDA: The Trump Media & Technology Group (TMTG), the operator of Donald Trump's social media platform Truth Social, made headlines on Monday, November 20, as it announced a $1.5 billion lawsuit against 20 media organizations. The lawsuit alleges defamation and injurious falsehood, stemming from what TMTG claims are false reports regarding substantial financial losses.
The legal action, filed in the Florida state court in Sarasota County, targets a diverse range of media outlets, including major players such as Guardian News and Media, The Hollywood Reporter, Reuters, and CNBC, along with various niche finance, politics, or left-leaning websites.
TMTG lawsuit alleges 'coordinated' reporting
The crux of the lawsuit revolves around recent news articles suggesting that TMTG incurred a staggering $73 million in losses, a figure vehemently denied by the company.
According to the lawsuit, the accused media organizations exhibited "apparent coordination" between them, reporting the same false number within approximately 24 hours of one another.
The reports allegedly cited a public Securities and Exchange Commission (SEC) filing, in which the purported $73 million loss was conspicuously absent.
"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 ('SEC') filing, in which the mystery $73 million loss appears nowhere," the suit claims.
TMTG recently filed an amended S-4 registration statement with the SEC, aiming to progress its long-delayed merger with Digital World Acquisition Corporation.
This merger is crucial for TMTG to secure a listing on the stock exchange and raise additional capital.
The lawsuit contends that the accused media outlets, through false reporting, actively sought to thwart this merger.
"TMTG intends to hold these reckless and malicious media outlets to account for their false reporting and for their seemingly coordinated effort to destroy TMTG and Truth Social," the suit asserted, though it does not explicitly make a claim for civil conspiracy.
While some outlets issued corrections or updates to their articles, the lawsuit emphasizes that none have retracted the allegedly defamatory content or publicly apologized, exacerbating the purported damage.
For instance, The Hollywood Reporter posted a correction that reads, "This story has been updated to more accurately reflect TMTG’s net losses as disclosed on its balance sheet. An initial read of the Nov. 13 securities filing, since updated on Nov. 14, reported that Truth Social posted a $50 million loss in 2022, when in fact that figure was listed as a profit."
The lawsuit alleges defamation and injurious falsehood, seeking a jury trial and punitive damages of $1.5 billion. TMTG also demands a gag order compelling the deletion of all articles related to the contested losses and unspecified additional damages.
Social media support for TMTG lawsuit
Social media platforms buzzed with reactions, with many users expressing support for Trump's legal action.
"Now that's a thermonuclear lawsuit," one posted on X.
"Things are getting spicy. This man will not give up ever!" another wrote.
"Let the flood gates open, the back door censorship must end," someone else added.
"Good these people must be held accountable!!" another chimed in.
However, legal experts note that the lawsuit may encounter challenges under Florida’s anti-SLAPP statutes, which protect individuals' right to free speech, including journalism. TMTG justifies filing the lawsuit in Florida based on the state being where it conducts business.
This move raises comparisons to the high-profile lawsuit against Gawker Media by Hulk Hogan, which ultimately led to Gawker's demise in 2016, according to The Wrap.
