Digital World Acquisition Reaches SEC Settlement Over Alleged Fraud Claims
July 03 2023 - 5:49PM
Dow Jones News
By Sabela Ojea
The special purpose acquisition company Digital World
Acquisition said Monday that it reached a settlement with the U.S.
Securities and Exchange Commission's division of enforcement over
alleged fraud claims.
The SPAC merging with Trump Media & Technology Group said it
would enter a cease-and-desist order that would find the company
violated certain antifraud provisions in connection with its
initial public offering filings and other agreements related to the
timing and discussions it had with Trump Media & Technology
Group regarding the proposed business combination.
If Digital World Acquisition amends its previously filed Form
S-4, it will pay the SEC an $18 million civil money penalty after
closing any merger or business combination with Trump Media &
Technology Group or any other entity.
Trump Media & Technology Group is not a party to the
settlement and may terminate the merger agreement, but Digital
World Acquisition's board of directors has authorized going forward
with the settlement in principle.
Additionally, Digital World Acquisition said that Trump Media
& Technology Group disagrees with extending the company's
liquidation date by an additional three months, but that it expects
to work with Trump Media & Technology Group "in good faith to
address this disagreement in a manner that is in the best interest
of its shareholders."
"The company remains very interested in the transaction with
TMTG and is hopeful DWAC and TMTG can resolve this interpretative
divergence," Digital World Acquisition said.
Write to Sabela Ojea at sabela.ojea@wsj.com
(END) Dow Jones Newswires
July 03, 2023 18:34 ET (22:34 GMT)
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