TMTG lands in legal trouble
Media Organizations File Lawsuit Over Truth Social’s Exclusive Paid Access to Trump’s Posts
WASHINGTON D.C. – Two prominent media organizations, The Intercept Media and the Freedom of the Press Foundation (FPF), have filed a federal lawsuit against Donald Trump’s media firm, Truth Social operator TMTG (Trump Media & Technology Group). The legal challenge targets TMTG’s recently launched Truth API service, which offers paying customers early access to the former U.S. President’s social media posts.
Filed on Wednesday, the lawsuit aims to prevent Trump from leveraging the Truth Social platform to disseminate official government information exclusively, while simultaneously allowing investors to pay for privileged, earlier access to his announcements. The plaintiffs argue that this practice is “profoundly corrupt” and unconstitutional, naming Trump and two senior advisors as defendants.
“The President stands to gain financially by giving ‘market-moving’ government information to those who are willing and able to pay his personal company,” the court papers, filed in a Manhattan district court, stated.
TMTG, which Trump owns through a trust, rolled out Truth API earlier this month. The service promises customers access to Trump’s posts “milliseconds” before they become available to the general public. The company has actively marketed this service to trading firms and other Wall Street businesses, with reported fees ranging up to $100,000 per month.
Trump Posts, Markets React
The financial implications of Trump’s social media activity are well-documented. His posts have frequently touched upon sensitive issues with the potential to influence financial markets, including geopolitical developments like the war in Iran and policy decisions regarding international tariffs. Such announcements have often triggered significant shifts in commodities, equity indices, and individual company shares.
The Intercept and FPF highlighted that their regular coverage of Trump’s social media activities has been negatively impacted. According to the Financial Times, they now face “delayed access” to crucial announcements and “permanent bars to the president’s archived posts,” making it increasingly difficult for both organizations to fulfill their journalistic duties.
TMTG Defends Paid Access Service
In response to the lawsuit, a TMTG spokesperson defended the Truth API service. “Information from President Trump is disseminated by countless platforms and news outlets, many of which offer subscription APIs,” the spokesperson stated. They further added, “leftwing activists are trying to wrongfully weaponise the courts to censor him again and harm our shareholders.”
TMTG interim chief executive Kevin McGurn recently told the Financial Times that approximately 10 groups have already subscribed to Truth API, paying between $60,000 and $100,000 monthly. McGurn also indicated plans for an “expansion” of Truth API targeting retail investors, with TMTG engaged in “active conversations with hyperscalers, some of the largest news organisations and developers of large language models.”
This legal challenge emerges as TMTG continues to broaden its paid access offerings to Trump’s posts. Concurrently, TMTG shares experienced a decline of over 6% on Wednesday. The company previously reported a significant financial setback, with a $238 million loss in the second quarter of this year.
