Investment firms led by the former CEO of the SPAC that merged with Donald Trump’s media company have filed a federal civil lawsuit in South Florida alleging that their files were hacked and stolen by a current member of the media company’s board of directors. The firms accuse Eric Swider of plotting to replace Patrick Orlando as CEO of Digital World Acquisition Corp in early 2023 and claim that Swider and others “stole access” to the firms’ computer systems to attack Orlando. The lawsuit seeks damages and an injunction to prohibit the use of the stolen information and stop the defendants from hacking the firms’ files. Orlando was later fired from Digital World and replaced by Swider.
Digital World recently completed a merger to take Trump Media & Technology Group Corp public, allowing it to trade on the Nasdaq Stock Market. However, the company’s stock price has since declined significantly, losing almost 45% of its value since April 1. The rocky road to Trump Media’s IPO has been marked by legal disputes, including fraud charges settled with the Securities and Exchange Commission, a lawsuit against co-founders over alleged mismanagement, and criticism labeling the company a meme stock and a scam. Trump Media did not immediately respond to requests for comment on the lawsuit, and Swider denied all of the allegations against him in an interview with Wired.
The Florida lawsuit alleges that Swider misled DWAC’s directors and business partners by making false and misleading representations and offered compensation to colluders in exchange for supporting his plan to take over the company. Swider aimed to increase his compensation as CEO of DWAC while also seeking control of ARC Global Investments II, which owned 19% of DWAC prior to the merger. Swider and Cano allegedly accessed an account on an electronic file storage website owned by Benessere that contained information on ARC II. Cano was promised the position of DWAC president in exchange for access to the account and was given a convertible note worth 165,000 shares of DWAC’s stock.
Cano accessed the storage account multiple times since February 2023 and provided the information to Swider, who used it to send false and defamatory claims about Orlando to ARC II’s members. In a March 5 email, Swider accused Orlando of failing to maintain fiduciary responsibility and other charges. Orlando eventually discovered the email because Swider failed to remove Orlando’s wife from the mailing list. The lawsuit provides a detailed account of the alleged scheme orchestrated by Swider and Cano to take control of DWAC and enlarge their holdings. Despite the legal disputes and controversies surrounding Trump Media, the company continues to operate its Trump-centric social media app Truth Social and trade on the Nasdaq under the ticker DJT.
The attempt to oust Orlando and seize control of DWAC is just one chapter in the ongoing saga of legal battles and controversies that have defined Trump Media’s journey to becoming a public company. The company has faced criticism, legal challenges, and financial losses, leading to a significant decline in its stock price since going public. The lawsuit against Swider and Cano sheds light on the alleged misconduct and unethical behavior that occurred during the merger process and reveals the internal power struggles and conflicts within the company’s leadership. Trump Media’s future remains uncertain as it navigates through these challenges and attempts to regain investor confidence and credibility in the market.
