Sen. Elizabeth Warren calls on SEC to investigate Trump SPAC deal

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  • Sen. Elizabeth Warren asked the Securities and Exchange Commission to investigate a planned SPAC deal involving former President Donald Trump.
  • Warren noted recent news reports that Digital World Acquisition Corp., which plans to merge with Trump’s new social media company, “might be holding private and unannounced discussions about the merger as early as May 2021.” securities infringed.
  • The Massachusetts Democrat said he is “concerned about unfairly paid incentives under SPAC deals, which are often structured to exploit retail investors for the benefit of large institutional investors such as hedge funds, venture capital insiders and investment banks.” are.”

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Sen. Elizabeth Warren on Thursday asked the Securities and Exchange Commission to investigate a planned SPAC deal involving former President Donald Trump’s planned social media platform.

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Warren, Massachusetts Democrat, In a letter to SEC Chairman Gary Gensler Noted recent news reports that Digital World Acquisition Corp., which last month announced plans to merge with Trump’s new company, “may be in private and unannounced discussions about the merger as early as May 2021.” has infringed securities by omitting this information. [SEC) filing and other public statements.”

Warren also wrote, “The reports about DWAC and Trump Media and Technology Group7 appear to be a textbook example of a SPAC misleading shareholders and the public about materially important
information.”

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The SEC did not immediately respond to CNBC’s request for comment.

Special purpose acquisition companies such as DWAC are created to raise capital in public equity markets with the goal of purchasing or merging with private firms.

Trump Media & Technology Group last month said it had entered into a merger agreement with DWAC that would end with Trump’s company becoming a publicly listed company, subject to regulatory and stockholder approval.”

– Additional reporting by CNBC’s Thomas Franck

This is breaking news. Please check back for updates.

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