Sen. Elizabeth Warren (D-Mass.) on Wednesday called on the Securities and Exchange Commission (SEC) to open an investigation into the planned deal between former President Trump ’s …
Sen. Elizabeth Warren (D-Mass.) on Wednesday called on the Securities and Exchange Commission (SEC) to open an investigation into the planned deal between former President Trump ’s new media and technology company and a Special Purpose Acquisition Company, or SPAC. In a letter to SEC Chairman Gary Gensler, Warren said Trump’s company “may have committed serious securities violations by holding private and undisclosed discussions about the merger as early as May 2021,” which was before the deal was announced. Trump announced last month that he was launching a new social media network, dubbed “Truth Social,” while also revealing that his Trump Media & Technology Group had entered into a merger agreement with Digital World Acquisition Corp (DWAC), a SPAC. The blank-check company was established in December. Trading in the SPAC was temporarily halted a number of times after Trump announced the merger. The stock skyrocketed 130 percent at one point. Warren noted that according to the Securities Act of 1933, SPACs must disclose any form of direct or indirect contact with potential target companies in an effort to protect investors who get on board at the time of an initial public offering (IPO).
