More Turmoil in Trump’s Truth Social’s Parent Company as Senior Executives Depart

NEW YORK, USA Several senior executives at Donald Trumps media company, Trump Media & Technology Group (TMTG), have exited the business following allegations of mismanagement against its CEO, Devin Nunes, according to a report by ProPublica.

In a Securities and Exchange Commission (SEC) filing on Thursday, October 3, 2024, TMTG confirmed the resignation of its chief operating officer, Andrew Northwall.

The company has also parted ways with chief product officer Sandro De Moraes, a product designer, and an HR director, following an anonymous whistleblower complaint alleging misuse of funds, the hiring of foreign contractors, and interference with product development by Nunes, the former Republican congressman from California.

The departures come as Trump Media, the parent company of Truth Social, has struggled with financial difficulties.

According to the Associated Press, the company posted a loss of nearly $58.2 million last year, while generating only $4.1 million in revenue.

Its stock price has plummeted from a high of $79.38 in March, when it debuted on the Nasdaq, to a low of $12.15 last month, just as former President Donald Trump, who owns about 60% of the companys stock, became eligible to sell his shares.

ProPublicas report suggests that the executives who departed were pushed out in retaliation for the whistleblower complaint.

Some of the ousted staff members were reportedly asked to sign agreements prohibiting them from publicly accusing Trump Media of wrongdoing in exchange for severance packages.

In response to the report, a Trump Media spokesperson said the inquiry utterly fabricates implications of improper and even illegal conduct that have no basis in reality, and described the allegations as part of an ongoing campaign to damage the company.

The spokesperson added that TMTG strictly adheres to all laws and applicable regulations.

Northwall, who announced his resignation in a Truth Social post, wrote, Ive decided to resign from my role and look forward to focusing more on my family and returning to my entrepreneurial journey, where my heart truly lies.

De Moraes also updated his bio on the platform to reflect his departure.

Truth Social, created by Trump after his ban from Twitter and Facebook following the January 6, 2021, Capitol attack, has faced numerous challenges since its launch, including significant revenue shortfalls and internal turmoil.

The recent executive shakeup adds further uncertainty to the company’s future as it continues to navigate legal and financial difficulties.