Digital World Acquisition Corp., the blank-check company seeking to take Donald Trump’s social media company public, misled investors, according to the U.S. Securities and Exchange Commission.
The SEC on Thursday alleged that documents filed by Digital World in 2021 were “materially false.” The company will pay $18 million to settle the allegations if it completes the deal with Trump Media & Technology Group, which runs the Truth Social platform.
According to the SEC, Digital World said in filings that it hadn’t had any discussions with target companies before offering shares. However, the regulator alleged the company had, in fact, had extensive conversations with the Trump media company.