Truth Social's parent company, Trump Media, has resigned

The chief operating officer of Truth Social's parent company has resigned, and the company must transfer about 800,000 shares to its investors as part of a court ruling, according to a regulatory filing.

Andrew Northwall, the former COO, resigned from Trump Media and Technology Group Corp. late last month, according to a Securities and Exchange Commission filing, saying the company plans to “shift his responsibilities internally.”

No details were given about the resignation. He joined the company in December 2021, according to his LinkedIn page.

The SEC filing also revealed that a Delaware court ruled last month that 785,825 shares of Trump Media must be divested to Arc Global Investments II. The two sides are at loggerheads over how many shares Arc was owed after Trump Media merged with Digital World Acquisition Corp. The court said ARC and Trump Media have the option to appeal within 30 days of the final order.

Trump Media runs the social media platform Truth Social, which was created after Trump was banned from Twitter and Facebook following the Capitol riots on January 6, 2021. Based in Sarasota, Florida, the company was losing money and struggling to grow revenue. According to regulatory filings, it lost about $58.2 million last year while generating just $4.1 million in revenue.

Shares of Trump Media are considered a meme stock by some market experts, a nickname given to stocks that get caught up in online buzz and that traditional analysis says are overvalued. The stock has fluctuated for several months, with trading largely conducted by individual investors who are generally considered less sophisticated than day traders.

Late last month, Trump Media stock fell to record lows on the first trading day that its largest shareholder, Donald Trump, was free to sell his stake in the company behind the Truth social platform.

Trump Media, whose shares are commonly referred to as TMTG, began trading publicly in March. When the company debuted on the Nasdaq in March, shares hit a high of $79.38.

Shares of Trump Media & Technology rose slightly to $16.20 before the market opened on Friday.