- An executive with Digital World Acquisition Corp. is suing for fraud.
- Brian Shevland claims he was frozen out of the deal and scrubbed from documents.
- DWAC is the subject of inquiries by the SEC and FINRA over its deal to take Trump Media public.
An executive with Digital World Acquisition Corp., who says he was in the running for a board seat and was an integral part of the deal to bring Donald Trump's media firm public, is suing the blank-check firm for fraud.
According to the New York Times, Brian Shevland is suing DWAC CEO Patrick Orlando for what he says is "brazen fraud." Shevland claims he was frozen out of the deal when his name was scrubbed from regulatory documents that should have shown he was a nominee for a seat on the board of the blank-check firm.
He also says he is owed 7,500 shares of the SPAC and he was prevented from buying more at a discount. In addition, he is claiming Orlando went back on a commitment to cut him into other SPAC deals.
Lawyers for Shevland and Orlando did not provide further comment to the New York Times.
Shevland, who runs an investment firm called Bluestone Capital Management, claims he was a key dealmaker in the negotiations to bring the former president's media company public. The merger between DWAC and Trump Media and Technology Group was announced in October, with the news sending shares of the blank-check firm soaring.
Earlier this month, the SPAC disclosed that the US Securities and Exchange Commission was investigating communications between its executives and Trump's media firm. The Financial Industry Regulatory Authority is also investigating the firm over a spike in trading activity ahead of the merger announcement.
Shares of Digital World Acquisition Corp. were trading at $51.33 before the opening bell on Friday, down about 2.6%.