The logo of Donald Trump’s Truth Social app is displayed on a smartphone on March 25, 2024.
Anna Buckley | Getty Images
Trump Media A newly hired public accounting firm on Monday submitted an updated examination of the company’s finances after its last auditor was charged with fraud by the U.S. Securities and Exchange Commission.
Shares of Trump Media initially fell more than 7% following the announcement on Monday. The stock was down about 6% as of 1:00 p.m. ET.
The media company is majority-owned by former President Trump and is listed on Nasdaq under the stock symbol DJT. its revised registration statement These include a reexamination by Phoenix, Arizona-based firm Semple, Marchal & Cooper, LLP.
The company behind social media platform Truth Social said in a statement Press release The company’s latest filing amends its mid-April registration statement and does not issue any new shares.
“I would like to thank SMC for serving as our independent auditor and enabling us to file an amended registration statement, which we expect the SEC to review immediately,” Trump Media CEO Devin Nunes said in a press release.
Trump Media hired Semple, Marchal & Cooper, LLP in early May, replacing its previous auditor, BF Borgers CPA. Three days before Trump Media announced the shift, SEC charges BF Borgers A “massive fraud” affected more than 1,500 applications.
Federal regulators accuse “bogus audit mills” of failing to adhere to established auditing standards and falsely representing to clients that their work would meet those standards.
The Securities and Exchange Commission said BF Borgers and its owner Benjamin Borgers agreed to pay civil penalties totaling $14 million and were permanently barred from auditing public companies.
Despite Monday’s stock price drop, Trump Media still has a market capitalization of nearly $7.5 billion, which critics say is disproportionate to the small amount of revenue the company reports.
The company’s only product, Truth Social, appears to be struggling to maintain its user base, which generates only a fraction of the traffic enjoyed by established social media giants like X and Facebook, according to the data.
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