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Yahoo Finance Trump has billions in new paper wealth. But accessing it quickly could get messy.
Yahoo Finance
Trump has billions in new paper wealth. But accessing it quickly could get messy.
An 'inevitable lawsuit' could follow if Trump tries to short-circuit the 'lock-up' period now in place for large shareholders of DJT.
Ben Werschkul • Washington Correspondent
Wed, Mar 27, 2024, 9:25 AM EDT • 6 min read
The cash-strapped Donald Trump would surely love to quickly access the billions of dollars his newly public media company is now worth. ... He might have no choice but to wait.
The former president and his allies have options to try to short-circuit the "lock-up" period now in place for large shareholders of Trump Media & Technology Group Corp. (DJT). ... But making such a move, a variety of corporate finance and IPO experts told Yahoo Finance this week, could very quickly become extraordinarily messy. ... History shows such a maneuver could lead to a stock price drop followed by an "inevitable lawsuit" on behalf of public market shareholders, according to Jay Ritter of the University of Florida's Warrington College of Business.
This is a merger that "has already been a gravy train for lawyers," Ritter added, and litigation would likely begin anew if there were even a public discussion of waiving the standard short-term trading prohibition.
Usha Rodrigues, a corporate finance and securities law specialist at the University of Georgia, largely agreed. Any downward price action following a move to waive Trump's agreement would allow shareholders to show injury and give them standing to sue, she said.
{snip}
Trump has billions in new paper wealth. But accessing it quickly could get messy.
An 'inevitable lawsuit' could follow if Trump tries to short-circuit the 'lock-up' period now in place for large shareholders of DJT.
Ben Werschkul • Washington Correspondent
Wed, Mar 27, 2024, 9:25 AM EDT • 6 min read
The cash-strapped Donald Trump would surely love to quickly access the billions of dollars his newly public media company is now worth. ... He might have no choice but to wait.
The former president and his allies have options to try to short-circuit the "lock-up" period now in place for large shareholders of Trump Media & Technology Group Corp. (DJT). ... But making such a move, a variety of corporate finance and IPO experts told Yahoo Finance this week, could very quickly become extraordinarily messy. ... History shows such a maneuver could lead to a stock price drop followed by an "inevitable lawsuit" on behalf of public market shareholders, according to Jay Ritter of the University of Florida's Warrington College of Business.
This is a merger that "has already been a gravy train for lawyers," Ritter added, and litigation would likely begin anew if there were even a public discussion of waiving the standard short-term trading prohibition.
Usha Rodrigues, a corporate finance and securities law specialist at the University of Georgia, largely agreed. Any downward price action following a move to waive Trump's agreement would allow shareholders to show injury and give them standing to sue, she said.
{snip}
