Sen. Elizabeth Warren is calling on the Securities and Exchange Commission to investigate securities violations committed by Digital World Acquisition when PSPC announced plans to merge with Donald Trump’s media company.
Digital World is a PSPC that rose 1,650% in just two days after announcing plans to merge with Trump Media and Technology Group last month. tech giants such as Facebook and Alphabet, according to their presentation to investors.
But shortly after the announcement of a possible merger, reports emerged that Digital World had held private and undisclosed discussions about the merger with Trump Media as early as May 2021. SPAC only went public in September and gave no indication in its SEC filings that it planned to merge with Trump, deceptive regulators and the public, Warren argued.
Warren also reiterated her considerations to Gensler that PSPC generally wants additional scrutiny by the regulator, as they “are structured to exploit retail investors to gain advantages from giant institutional investors such as hedge funds, venture capitalists and investment banks. “
According to Warren, the fact that Digital World revealed the so-called first discussions with Trump and his company “has enriched big investors while trapping retail investors in a stock market bubble. “
Since PSPC peaked at $175 on Oct. 22, it has fallen 68% to around $56 on Thursday afternoon. of shares, according to a monetary declaration form.
Meanwhile, PSPC’s early investors, such as Lighthouse Investment Partners and Saba Capital, posted paper profits of more than $100 million at a time after the deal’s announcement.
“If those reports are true, he has a duty to act,” Warren said.