In recent days, the media at large has been laser-focused on the imminent removal of Trump's share lock-up restrictions, which would allow him to start dumping Trump Media and Technology Group (NASDAQ: DJT) shares worth billions of dollars, should the former US President so desire. Another development, however, has emerged today to attract investors' eyeballs.
Trump Media And Technology Group's Legal Wranglings With Arc Global
For the benefit of those who might not be aware, Trump Media and Technology Group recently became a public entity by undergoing a reverse merger with the SPAC Digital World (DWAC).
In the pre-merger phase, Arc Global had filed a lawsuit against Digital World in the Delaware Court of Chancery, alleging that the SPAC's then-CEO, Eric Swider, and three other board members had miscalculated Arc’s stake in a manner that would deprive it of over 2 million shares in the post-merger setup. Arc Global had taken particular umbrage with the ratio at which its Class B DWAC shares were to be converted into Class A Trump Media shares.
In response, Digital World had lashed out against its former CEO, Patrick Orlando, and the sponsor Arc Global Investments II, alleging that Orlando had threatened to block the proposed merger between DWAC and Trump Media to "obtain a windfall by way of extortion."
Now, the Delaware Chancery Court Judge Lori Will has found Trump Media and Technology Group liable for breach of contract vis-a-vis its dealings with Arc Global. The judge, however, has rejected Arc Global's breach of fiduciary duty claims against Trump Media.
Additionally, Judge Lori Will has ordered that Arc Global's stake in Trump Media and Technology Group would now be converted at a ratio of 1.4911, which is higher than the 1.3481 ratio that Trump Media/DWAC argued for but substantially less than the 1.8178 ratio that Arc Global had demanded.
Trump's Lock-Up Restrictions
Meanwhile, as stated earlier, the imminent removal of Trump's lock-up restrictions on his gigantic 59 percent stake in Trump Media and Technology Group is consuming a lot of airtime these days.
Bear in mind that Trump Media insiders remain subject to lock-up restrictions following the company's reverse merger with the SPAC Digital World. These restrictions will end on the 26th of September.
However, the lock-up restrictions can end this Thursday, with Trump theoretically free to start dumping his stake from Friday, if certain conditions are met, including if the stock continues to trade above the $12 share price. At the time of writing, the stock is trading at the $16.67 price level.
Of course, Trump has publicly committed to not selling any of his shares, which are currently worth around $2 billion. That commitment, however, has not halted speculation as to whether the former US President would be tempted to shave off some of the proverbial cream.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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