A Florida judge has denied a motion by Donald Trump’s Truth Social to block the sale of 18 million shares by two of the company’s co-founders, determining that the company would not suffer irreparable harm and that any potential damage could be addressed through financial compensation. The ruling came from Sarasota County Circuit Judge Hunter Carroll on Friday, who dismissed Truth Social’s arguments for a temporary injunction.
Truth Social 18M Shares Sale : Court Ruling on Temporary Injunction
Truth Social, officially known as Trump Media & Technology Group Corp. (TMTG), sought to prevent Arc Global Investments II LLC and United Atlantic Ventures LLC from selling their shares when a lock-up restriction expires on September 19. However, Judge Carroll ruled that the common stock owned by these entities is not unique and can be compensated with money damages if necessary.
The judge rejected TMTG’s request for an evidentiary hearing to demonstrate the potential impact of the share sale on the company’s stock price and viability, stating, “I just cannot come to the conclusion that I’m ever going to get to the point that the damages remedy here is not an adequate remedy at law.” He emphasized that the temporary injunction sought by TMTG was not viable.
Arguments and Legal Background
Kevin Jacobs, representing Arc Global, argued that the temporary injunction was akin to an impermissible asset freeze under Florida law. The defense also highlighted that TMTG recently issued 37 million shares to another entity for unrestricted market sale, undermining claims that the company would be significantly harmed by the sale of 18 million shares.
