• Investors are accusing Florida businessman Patrick Orlando of steering away from them millions of Trump Media shares.
• Orlando was the CEO of the blank check firm that helped take Trump Media public.
• Plaintiffs say in a lawsuit that Orlando “maliciously and knowingly acted in his own interests.”

Investors accuse blank check firm’s former CEO of helping buy president-elect’s parent company Donald Trump’s The social media site deprives the public of millions of shares.

Plaintiffs, more than three dozen investors, allege in a new lawsuit against Florida businessman Patrick Orlando that he “maliciously and deliberately self-served enormous amounts of assets, potentially worth hundreds of millions of dollars,” by diverting assets to himself. his family, through entities including an offshore shell company.

Plaintiffs say in lawsuit they were founding members of Orlando’s ARC Global Investments II entity sponsoring a SPAC merging with Trump Media and Technology Group going public earlier this year. Orlando was the CEO and chairman of the SPAC. Digital World Purchasing Company.

The lawsuit, filed Tuesday in the Delaware Court of Chancery, alleges that Orlando and ARC Global failed to turn over to the plaintiffs the amount owed — about 75% to 80% of a total of about 8.1 million shares of Trump Media that ARC Global owns. It does. .

Trump Media is the operator of Trump’s social media platform. Real Social.

Orlando, its attorneys and attorneys for ARC Global did not immediately respond to Business Insider’s requests for comment Thursday.

The lawsuit accuses the defendants of “coordinated and intentional theft of stock” and “gross breach of fiduciary duties” by Orlando.

The suit alleges that Orlando, “together with other Defendants, orchestrated a scheme to direct a majority of the ownership interests of ARC to himself and his family through a closely held alter-ego entity called Franlu LLC and a Cayman Islands-based entity called Belsize Ventures Ltd.” Franlu and Belsize are also listed as defendants in the case.

“In doing so, Orlando knowingly breached the fiduciary duties it owed to Plaintiffs by diluting Plaintiffs’ property interests,” the lawsuit states. “Specifically, as the Managing Member of the ARC, Orlando transferred roughly 46% of the membership shares of the ARC to Franlu in a confidential transaction for zero consideration in return.”

The lawsuit alleges that ARC Global transferred its shares to Orlando and his “inner circle” and “liquidated the remaining shares to fund Orlando’s own legal defense efforts and other personal expenses, blended with ARC’s own assets.”

“While Orlando claims that ARC is not in a position to distribute shares, he is enriching himself through a series of lavish purchases, including a brand new six million dollar home in Miami, from the proceeds of the TMTG shares he misappropriated.” the lawsuit alleges.

To date, the plaintiffs have received only a “scant portion” of Trump Media shares that they say are owed to ARC Global under the terms of their subscription agreements, the lawsuit states.

The lawsuit states that the merger, which allowed Trump Media to trade under the stock DJT, was completed in March and the lock-up period ended in September.

“Even assuming that the lock-up period precluded Plaintiffs from obtaining their Founders Shares, the lock-up period expired more than a month ago,” the lawsuit states.

The lawsuit states that Orlando sent an email to ARC Global members, including the plaintiffs, in September claiming that “ARC had matters that needed to be addressed before equity distributions could be made.”

“As an example, Orlando listed certain ‘obligations of ARC,’ including ‘good faith creditors, such as professional advisors or noteholders, as well as costs imposed on ARC through litigation,'” the lawsuit states.

The lawsuit states that Orlando emailed ARC Global members again in October, stating that “(i)nitial distributions are ongoing” but that “further distributions” are only “expected in the future.”

The lawsuit continues: “Orlando’s email once again refers to ‘attacks’ on ARC and ‘self-defense’ without any explanation as to how such ‘attacks’ impact ARC’s ability to tender TMTG shares to subscribed investors.” It speaks to the need.”

Securities and Exchange Commission sues Orlando In July, he alleged that blank-check company Digital World Acquisition Corp. “misrepresented” that it did not intend to merge with a particular company.

“Orlando knew these statements were false because he had personally had numerous, lengthy conversations with representatives of Trump Media & Technology Group Corp,” the SEC said in the lawsuit. he said.

The investor group, which filed the latest lawsuit against Orlando, demands to take back the “rightful portion” of 8.1 million shares, “cancel improper transactions” and financial compensation.

Shares of Trump Media rose 5.9 percent on Wednesday Trump defeats Vice President Kamala Harris presidential election, but fell 23% on Thursday, closing at $27.70.