After a federal grand jury in New York issued subpoenas for board members of the special purpose acquisition company that plans to take former President Donald Trump’s social media site "Truth Social" public, shares for the company fell more than 9% in pre-market trading after the subpoenas were revealed, Forbes reports.
The SEC launched a probe of the company, Digital World Acquisition Corp. (DWAC), in December, and the subpoenas seek some of the same documents the SEC asked for in its investigation "as well as requests related to communications with several individuals and information regarding venture capital and private equity company Rocket One Capital," Forbes report stated.
"The investigation came after multiple outlets reported Trump had met with DWAC Chief Executive Patrick Orlando before the company went public," Forbes reported. "The meeting could have broken SEC rules that prohibit SPACs from identifying a target company before raising money."
DWAC shares also fell in April after news reports stated that Tesla CEO Elon Musk had been approved by Twitter’s board of directors to acquire the company for $44 billion.