Donald Trump’s Truth Social is losing its top director

Former President Donald Trump’s social media platform, TruthSocial, recently lost one of its top executives.

On Friday, the Associated Press (AP) reported that a recent regulatory filing showed that the chief operating officer of Truth Social’s parent company had stepped down and that the company was required by a court order to hand over nearly 800,000 shares to the investor.

Chief Operating Officer Andrew Northwall resigned from Trump Media & Technology Group Corp. last month, according to a filing with the Securities and Exchange Commission. The filing noted that the company was planning an “internal transfer of responsibilities,” but provided no further details about his departure.

A recent SEC filing revealed that a court in Delaware ruled last month that 785,825 shares of Trump Media stock must be sold to ARC Global Investments II. The ruling came after a dispute between the two sides over the number of shares ARC was entitled to following Trump Media’s merger with Digital World Acquisition Corp. Both ARC and Trump Media have 30 days from the court’s final order to file an appeal.

Trump Media, which operates the Truth Social platform launched by the former president after he was banned from Twitter and Facebook following the January 6, 2021 Capitol riot, is struggling financially. Regulatory filings show the Sarasota, Florida-based company has struggled to generate revenue, losing nearly $58.2 million last year while bringing in just $4.1 million.

Some market experts have labeled Trump Media stock a “meme stock,” a term used to describe stocks that attract significant online attention and exceed their traditional market value. The stock has seen months of volatility, with most of the trading driven by individual investors, often seen as less experienced than professional day traders.

Last month, shares of the Trump Media & Technology group hit a new low on the first day Trump was allowed to sell his own shares. In mid-July, TMTG shares surged more than 31 percent after the first assassination attempt on Trump. Meanwhile, TMTG shares fell more than 10 percent earlier this month after the first presidential debate between Trump and Vice President Kamala Harris, the Democratic presidential candidate widely considered to be the winner of the debate.

Trump Media, listed under the stock exchange ticker TMTG, went public in March. After its debut on the Nasdaq stock exchange, the company’s shares reached a high of $79.38 per share. Before the market opened Friday, shares of Trump Media & Technology saw a slight gain, reaching $16.20.

This article includes reporting from the Associated Press.