NEW YORK, June 22, 2022 (GLOBE NEWSWIRE) — Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of Digital World Acquisition Corp. (“Digital World” or the “Company”) DWAC DWACW))).
On September 8, 2021, Digital World announced the closing of its initial public offering (“IPO”) of 25 million units at $10 per unit.
On October 21, 2021, following news that Digital World had entered into a deal to merge with Trump Media & Technology Group (“TMTG”), the price of Digital World shares increased by nearly 357% to close at $45.50 per share and continued to increase by over 100% the next day to close at $94.20 per share on October 22, 2021.
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 TMTG public via a merger with Digital World involved discussions of a merger with Digital World’s CEO, Patrick Orlando, as early as March 2021, months before Digital World itself conducted its IPO. According to the article these discussions “may have violated federal laws and stock exchange rules, lawyers said” because “SPACs aren’t supposed to have a merger planned at the time of their I.P.O.” Another issue raised by The New York Times article is that “Digital World’s securities filings repeatedly stated that the company and its executives had not engaged in any ‘substantive discussions, directly or indirectly,’ with a target company — even though Mr. Orlando had been in discussions with Mr. Trump.”
Following 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.
On May 16, 2022, Digital World disclosed in Form S-4 filing with the SEC that it had received a document request and subpoena from the U.S. Securities and Exchange Commission (“SEC”) in connection with an SEC investigation regarding, among other things, the evaluation of potential targets including TMTG.
Then, on June 13, 2022, following additional disclosures by Digital World in SEC filings, Bloomberg and other sources reported that the SEC investigation had expanded its investigation and issued another subpoena related to the planned merger with TMTG.
Following this news, Digital World’s stock price fell 13.2%, to close at $38.01 per share on June 13, 2022 and declined an additional 28% on June 14, 2022 to close at $27.30 per share.
If you purchased or otherwise acquired shares in Digital World securities and would like to discuss our investigation, please contact us by emailing email@example.com or by calling (646) 315-9003.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about this investigation, your rights, or your interests, please contact:
Frederic S. Fox
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
Fax: (415) 772-4707