Robbins Geller Rudman & Dowd LLP announces an investigation into potential violations of U.S. federal securities laws by Digital World Acquisition Corp. (“DWAC”) (NASDAQ: DWAC; DWACW) focused on whether DWAC and certain of its officers and directors made false and misleading statements and/or failed to disclose material information to investors.
If you have information that could assist in this investigation or if you are a DWAC investor who suffered a loss and would like to learn more, you can provide your information here:
You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at firstname.lastname@example.org.
THE COMPANY: DWAC is a special purpose acquisition company (“SPAC”), also known as a “blank check” company, incorporated for the purported purpose of effecting an initial business combination with an unidentified business. DWAC carried out its initial public offering in September of 2021. DWAC’s initial filings with the U.S. Securities and Exchange Commission (“SEC”) claimed that it had not identified, selected, or negotiated with any potential business combination targets. On October 20, 2021, DWAC announced that it had entered into a business combination with Trump Media & Technology Group (“TMTG”), a media venture started by former President Donald J. Trump after leaving office.
THE REVELATION: On June 27, 2022, DWAC filed a Form 8-K with the SEC revealing that “[o]n June 16, 2022, Digital World became aware that a federal grand jury sitting in the Southern District of New York has issued subpoenas to each member of [DWAC]’s board of directors; the subpoenas seek certain of the same documents demanded in [previously disclosed] SEC subpoenas, along with requests relating to [DWAC]’s S-1 filings, communications with or about multiple individuals, and information regarding Rocket One Capital.” DWAC further revealed that “on June 24, 2022, [DWAC] received a grand jury subpoena with substantially similar requests” and that “[t]hese subpoenas, and the underlying investigations by the Department of Justice and the SEC, can be expected to . . . materially delay, materially impede, or prevent the consummation” with TMTG.
On this news, the price of DWAC common stock fell by nearly 10%.
Robbins Geller has launched a dedicated SPAC Task Force to protect investors in blank check companies and seek redress for corporate malfeasance. Comprised of experienced litigators, investigators, and forensic accountants, the SPAC Task Force is dedicated to rooting out and prosecuting fraud on behalf of injured SPAC investors. The rise in blank check financing poses unique risks to investors. Robbins Geller’s SPAC Task Force represents the vanguard of ensuring integrity, honesty, and justice in this rapidly developing investment arena.
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