Trump Media's Shares Drops as a New Auditor Modifies Filing from the Firm Alleged of Fraud

Trump media stocks fell Monday after an accounting firm, which had been appointed to replace a previous auditor suspected of "massive fraud," released a new report on the company's finances, according to CNBC.

Prices for former President Donald Trump's eponymous firm fell 7% after the company declared it had given an updated report to the Securities and Exchange Commission, according to the report and SEC records.

Trump Media stock was down almost 6% as of 1 p.m. ET, according to CNBC.

Truth Social's parent business CEO Devin Nunes stated in a news release that the most recent filing revised an April registration statement.

The Arizona-based company Semple, Marchal & Cooper LLP filed on Monday, nearly a month after the previous auditor, BF Borders, was accused of making 1,500 fake statements to the SEC, according to a commission press release.

According to the SEC, BF Borgers agreed to pay a $12 million civil penalty, while owner Benjamin Borgers agreed to pay a $2 million civil penalty to resolve the claims.

Trump Media began trading openly in late March, after the completion of its merger with Digital World Acquisition Corp. Prices initially increased to $79 per share before plummeting after reports came that Truth Social will lose $58 million in 2023.

DJT prices were little above $41 as of Monday afternoon, according to Yahoo Finance statistics. Trump Media has a market valuation of around $7.5 billion, according to CNBC.

That, opponents argue, "is wildly disproportionate to the small amount of revenue the company has reported earning," according to the study.

"Data show that the company's sole product, Truth Social, appears to be struggling to hold onto its user base, which already generates just a tiny fraction of the traffic enjoyed by established social media giants like X and Facebook."