Trump Media Asks Louisiana to Investigate 'Anomalies' Surrounding the Trading of Its Shares

By Jace Dela Cruz

May 29, 2024 09:13 AM EDT

Trump Media and Technology Group (TMTG), the owner of former President Donald Trump's social media platform Truth Social, has called on Louisiana's financial regulator to investigate alleged irregularities in its share trading. 

Closing Arguments Begin In Former President Donald Trump's Hush Money Trial
NEW YORK, NEW YORK - MAY 28: Former U.S. President Donald Trump speaks to the media as he arrives for his hush money trial at Manhattan Criminal Court on May 28, 2024 in New York City.
(Photo : Julia Nikhinson-Pool/Getty Images)

Trump Media Urges Louisiana to Investigate its Trading of Shares

According to Reuters, Trump Media CEO Devin Nunes sent a letter to the Louisiana Office of Financial Institutions Commissioner Scott Jolly, urging an inquiry into possible market manipulation and violations of Louisiana Securities Law.

The letter highlighted a surge in short selling of Trump Media shares over the past 30 trading days, resulting in a high volume of failures to deliver (FTDs).

FTDs occur when a party in a trading deal does not fulfill their trading obligations. Short selling involves borrowing a firm's shares and then selling them to later repurchase them at a lower price before returning them to the owner.

The letter cited SEC data showing over a million FTDs on 11 trading days between April 9 and April 30, peaking at more than 2.3 million on April 29. Nunes expressed concerns about potential unlawful collusion among market participants due to the "anomalies surrounding the trading of DJT." Trump Media trades under DJT on the Nasdaq.

READ NEXT: Donald Trump Secures Another $1.6 Billion Worth of Shares in Trump Media 

Market Volatility of Trump Media

Since its market debut, Trump Media has experienced extreme volatility. Initial enthusiasm from Donald Trump supporters saw shares soar by 59% on Nasdaq on March 26.

However, the stock has since declined, leaving the firm with a market value of around $9 billion. The company reported $770,500 in revenue and a $12.1 million adjusted operating loss for the March quarter. 

READ MORE: Joe Biden Administration Sanctions Hundreds of Companies to Choke Russia's Supplies of Military Technology 

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