Top executives at former President Donald Trump’s media company have reportedly been forced out of their jobs in retaliation for filing complaints that CEO Devin Nunes was mismanaging the firm.
Nunes, the former Republican congressman who was tapped as CEO of Trump Media and Technology Group, was the subject of an anonymous “whistleblower” complaint that was sent to the company’s board of directors, according to a report in ProPublica.
The complaint reportedly alleged that Nunes, who has been described as a “proverbial loser” by Ken Griffin’s Citadel Securities after the market maker was blamed for Trump Media’s stock price slump, misappropriated funds, hired foreign contractors and interfered with development of the product.
Former employees of the company that operates the Truth Social platform claimed that chief operating officer Andrew Northwall and chief product officer Sandro De Moraes were forced out in retaliation, according to the ProPublica report.
Two other lower-level employees also left the firm. The company disclosed the COO’s departure in a filing with the Securities and Exchange Commission on Thursday.
Northwall resigned from Trump Media late last month, according to the SEC filing, adding that the company plans to “transfer his duties internally.” No further details of the resignation were given.
He joined the company in December 2021, according to his LinkedIn page.
On Social Truth, Northwall wrote Thursday that he had “decided to resign from my role at Trump Media.” He added that he was “extremely grateful” to Trump and Nunes “for this opportunity.”
“As I step back, I look forward to focusing more on my family and returning to my entrepreneurial journey,” the statement said.
De Moraes has not commented publicly, although he changed his social truth status in his bio to “Former Head of Product” at Trump Media.
Trump Media responded to the ProPublica report by accusing the newspaper of waging “an increasingly absurd campaign … possibly at the behest of political interest groups, to damage” the company “based on false and defamatory allegations and vague innuendos.” “.
The company said the ProPublica story “completely fabricates implications of improper and even illegal behavior that have no basis in reality.”
“TMTG strictly complies with all applicable laws and regulations,” the company said.
Nunes, a key Trump ally during his presidency, was named CEO of Trump Media in 2021. According to ProPublica, the company hired a lawyer to investigate the whistleblower’s claims and interview staff.
Last week, employees who were interviewed by the attorney were told they were being fired, according to the report.
An HR director and a production designer were among those forced out along with Northwall and De Moraes, ProPublica reported.
Employees were required to sign an agreement pledging not to make public allegations of wrongdoing against the company in exchange for severance packages.
Trump Media stock has been considered a meme stock by some market pundits, which is a nickname given to stocks that get caught up in the Internet hype and go beyond what traditional analysis says they’re worth.
Shares have fluctuated for several months, with trading driven largely by individual investors who are typically considered less sophisticated than day traders.
At the end of last month, shares of Trump Media fell to an all-time low on the first day of trading when its largest shareholder, Trump, was free to sell his stake in the company behind the Truth Social platform.
Trump Media, whose stock is commonly referred to as TMTG, began public trading in March. When the company made its Nasdaq debut in March, shares hit $79.38.
Shares of Trump Media & Technology rose 2% to close at $16.50 on Friday.
By postal wire
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