In a legal battle brewing in New York, former President Donald Trump faces a federal lawsuit over his Truth Social platform’s new paid service, which offers subscribers early access to his posts on U.S. policy. This service, introduced earlier this month, has stirred controversy by providing Wall Street firms with the opportunity to view potentially market-moving information for fees reaching $100,000 monthly.
The lawsuit, filed by the Freedom of the Press Foundation and The Intercept, claims this service breaches the Constitution, arguing that official policy announcements should be equally accessible to the public. Seth Stern, chief of advocacy at the Freedom of the Press Foundation, stated, “A president selling priority access to news he himself generates for the benefit of a private company he controls is so blatantly corrupt and unconstitutional that it would have been hard to even fathom just a few years ago.”
Trump Media & Technology Group, the parent company of Truth Social, defends the service, asserting that selling quick access to information is commonplace in the tech industry. The company accused the plaintiffs of attempting to censor the president, stating, “Information from President Trump is disseminated by countless platforms and news outlets, many of which offer subscription APIs. Now, left wing activists are trying to wrongfully weaponize the courts to censor him again and harm our shareholders.”
The introduction of this new service coincides with financial struggles for Trump Media, whose stock has plummeted from $62 to below $10 since it went public two years ago. The company reportedly loses hundreds of millions of dollars each quarter.
The plaintiffs argue the service contravenes the First Amendment’s guarantee of equal access to presidential communications and the Fifth Amendment’s prohibition against imposing unreasonable conditions for government benefits. They seek to have the court terminate the Truth API service, which delivers early access to Trump’s posts.
Additionally, the lawsuit challenges an existing deal where Trump’s posts are exclusively available on Truth Social for six hours before being shared elsewhere. The plaintiffs are requesting the court to prevent Trump from posting official government information solely on his platform.
Trump, who owns over 40% of Trump Media through a trust, has been criticized for monetizing his presidency through ventures like Truth Social and cryptocurrency endeavors. His financial disclosure report revealed earnings exceeding $1 billion from these crypto businesses last year.
World Liberty Financial, Trump’s digital finance company, received a $500 million investment from an entity linked to the U.A.E. government and has sold millions in Trump-themed souvenir coins. Trump’s business dealings have attracted scrutiny, including a transaction with a billionaire involved in a federal lawsuit.
The lawsuit, filed in the Southern District of New York, also names Daniel Scavino, Trump’s deputy chief of staff, and Natalie J. Harp, his executive assistant, as defendants.
