Senator Warren is calling for the Securities and Exchange Commission to investigate the planned deal between former President Trump’s new media company and a special-purpose acquisition company, reported The New York Times.
On Thursday, Warren sent SEC Chair Gary Gensler a letter, calling for him to look at whether Digital World officials and Trump “may have committed securities violations by holding private and undisclosed discussions about the merger as early as May 2021, while omitting this information in U.S. Securities and Exchange Commission (SEC) filing and other public statements.”
SPACs, or special-purpose acquisition companies, are governed by rules that mandate the so-called blank-check companies are not allowed to meet with possible acquisition targets before listing on a public exchange.
“The reports about DWAC and Trump Media and Technology Group appear to be a textbook example of a SPAC misleading shareholders and the public about materially important information,” Warren adds in her letter.
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