2 weeks ago
Media Groups Sue Trump Over Truth Social Early Access
Some news organizations are upset with the President of the United States.
They say he is doing something unfair and have taken him to court.
The President owns a social media website called Truth Social.
He started letting people pay up to $100,000 a month to see his posts a few seconds before everyone else.
Sometimes the President posts about big things like wars or trade, and that can make money values go up or down very fast.
The news organizations say this is wrong because people with money get important information before everyone else, and they say the President is breaking the rules of the Constitution.
The company that runs the website says the worries are not true and that many other news websites also sell fast access to information.
The company has signed contracts with more than ten customers, mostly trading companies.
Now a judge will decide if the President is allowed to do this.
The Intercept and Freedom of the Press Foundation sued President Donald Trump on Wednesday in federal court in New York.
The lawsuit calls the paid early-access scheme "extraordinary, corrupt and unconstitutional" and "profoundly corrupt."
Subscribers can pay up to $100,000 per month for nearly instant access to Trump's often market-moving Truth Social posts.
The lawsuit alleges First and Fifth Amendment violations and seeks an injunction halting exclusive government information posted on Truth Social.
Trump Media and Technology Group, which reported a $238 million net loss, views Truth API as a recurring revenue stream; aides Natalie Harp and Dan Scavino were also named defendants.
- Who
- President Donald Trump, aides Natalie Harp and Dan Scavino, the Executive Office of the President and the White House Office were sued by The Intercept and Freedom of the Press Foundation.
- What
- A lawsuit alleging that selling paid early access to Trump's market-moving Truth Social posts is "extraordinary, corrupt and unconstitutional," violating the First and Fifth Amendments.
- Where
- US District Court for the Southern District of New York (Manhattan federal court).
- When
- The lawsuit was filed on Wednesday; the Truth API service was unveiled in mid-July and went live at the start of August.
- Why
- Plaintiffs allege Trump profits by giving "market-moving" government information to paying subscribers, violating the First Amendment guarantee of equal access to presidential announcements and the Fifth Amendment ban on unjustified charges.
Media Groups (Plaintiffs)
Trump Media and Technology Group / Truth Social
Fairness of paid early access
Media Groups (Plaintiffs)
Selling early access to Trump's posts gives wealthy subscribers, especially traders, an unfair head start on market-moving information and is "profoundly corrupt."
Trump Media and Technology Group / Truth Social
TMTG dismissed concerns over the product and views Truth API as a legitimate, long-term recurring revenue stream for institutional customers.
Constitutionality
Media Groups (Plaintiffs)
The scheme violates the First Amendment's guarantee of equal access to the President's public announcements and the Fifth Amendment's ban on unreasonable charges.
Trump Media and Technology Group / Truth Social
A Truth Social spokesperson said information from President Trump is disseminated by countless platforms and outlets offering subscription APIs, and accused left-wing activists of weaponizing the courts to censor the President and harm shareholders.
Key facts
- Defendant
- President Donald Trump
- Co-defendants
- Natalie Harp, Dan Scavino, Executive Office of the President, White House Office
- Plaintiffs
- The Intercept and Freedom of the Press Foundation
- Filing location
- US District Court for the Southern District of New York
- Service
- Truth API (also called Trump API)
- Early access price
- Up to $100,000 per month
- Customers
- More than 10 agreements, primarily high-frequency trading firms at $60,000-$100,000 per month
- TMTG quarterly results
- $238 million net loss on $1.7 million revenue
Quotes
The Freedom of the Press Foundation
Media organization alleging corruption in Trump’s new service
“"Information from President Trump is disseminated by countless platforms and news outlets, many of which offer subscription APIs. One of those channels is Truth Social, which was founded as an uncancellable haven for free speech after the President was unjustly deplatformed," the statement continued. "Now, left‑wing activists are trying to wrongfully weaponise the courts to censor him again and harm our shareholders."”
firstpost.com
“This scheme is profoundly corrupt. The President stands to gain financially by giving 'market-moving' government information to those who are willing and able to pay his personal company.”
NDTV
deadline.com
Sources
US President Trump sued over service that offers paid early access to Truth Social posts
Trump sued over paid early access to Truth Social posts, plaintiffs argue move violates First Amendment
'Corrupt': Trump Sued For Selling Early Access To Truth Social Posts
Trump Sued Over Sale Of Faster Access To Truth Social Posts
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