DWAC's SEC Misrepresentation Settlement
What happened
promisedocumented DWAC's offering filing represented that it had not selected a target or initiated substantive discussions with one.
- U.S. Securities and Exchange Commission: In the Matter of Digital World Acquisition Corp.2023-07-20 · Findings 5-13 describing IPO representations
actiondocumented The SEC found those filings omitted prior target discussions and violated antifraud provisions.
- U.S. Securities and Exchange Commission: In the Matter of Digital World Acquisition Corp.2023-07-20 · Findings 14-28 and ordering clauses
outcomedocumented After the merger closed, the successor company reported paying the contingent civil penalty required by the order.
- Associated Press: Wall Street debut of Trump Truth Social network could give him stock worth billions on paper2024-03-21 · SEC settlement and merger background
- U.S. Securities and Exchange Commission: Trump Media Form 10-Q2024-08-09 · SEC settlement note
limitationdocumented The order's findings bound DWAC in the settlement and were not findings against Trump or TMTG.
- U.S. Securities and Exchange Commission: In the Matter of Digital World Acquisition Corp.2023-07-20 · Footnote 1 and named respondent
People and organizations
- Digital World Acquisition Corp.affected party
- Digital World Acquisition Corp.payer
- Securities and Exchange Commissionrecipient
Assessment
The order established securities-law violations by DWAC and required corrective undertakings before the Trump Media transaction proceeded; it did not find Trump personally liable.