Company Betrays “America First” – ProPublica

An internal whistleblower complaint at Trump Media calls for the firing of CEO Devin Nunes, alleging he “severely” mismanaged the company and exposed it to “significant risk of legal action” from the from regulators, according to a copy reviewed by ProPublica.

The letter also says former President Donald Trump’s company hires “America Last” — alleging that Nunes imposed a directive to hire only foreign contractors at the expense of “American workers deeply committed to our mission.”

“This approach not only contradicts the America First principles we stand for, but also raises concerns about the quality, dedication and alignment of our workforce with our core values,” the letter said.

Trump’s promise to “stop outsourcing” and “punish” companies that send jobs overseas has been a centerpiece of his political career, including his current presidential campaign.

The letter also accuses Nunes, a former Republican congressman, of hiring unqualified members of his inner circle and being dishonest with employees of the company, which runs the social media platform Truth Social.

ProPublica reported this month that several executives and staffers had been forced to leave the company, and people involved with Trump Media believed the ousters were retaliation following a complaint from a pitcher. alert. The complaint sparked intense interest among former employees, according to interviews and recordings of communications between former employees. Several people with knowledge of the company told ProPublica that concerns revolved around alleged mismanagement by Nunes.

No specific employee signed the letter, which was reviewed by ProPublica. He claims to represent “more than half” of the company’s staff, including “several department heads and senior executives.” The copy reviewed by ProPublica has been circulating among people connected to the company, and it is unclear whether there are any differences between it and the version recently submitted to the Trump Media board.

The copy reviewed by ProPublica is addressed to the board’s audit committee and indicates it was submitted through the company’s anonymous whistleblowing channel.

Trump Media declined to answer detailed questions about the whistleblower complaint or provide comment from the board. But the company’s lawyer accused ProPublica in a letter of writing another one as part of a “series of hit pieces” and of “once again relying on unreliable sources, in attempting to paint a picture of internal unrest.”

In a previous statement, the company’s attorney said in a letter that Trump Media “strictly adheres to all applicable laws and regulations.”

Nunes and the Trump campaign did not respond to questions.

The whistleblower’s complaint paints a picture of the company’s deep turmoil and problems at a time when Trump Media shares have soared nearly 150% in less than a month, pushing up the company’s market value company at around $6 billion. Even though Truth Social generates virtually no revenue, the company’s shares have attracted enormous interest from Trump fans and speculators.

The stock’s rise has generated a windfall, at least on paper, for Trump, whose majority stake in the company is now worth more than $3 billion. (He recently said he has no plans to sell.)

The company’s board members include Trump’s son Don Jr. and two former members of his cabinet: Robert Lighthizer, the former U.S. Trade Representative, and Linda McMahon, who headed Small Business Administration and is a major donor and current co-chair of Trump’s board. transition planning committee.

After ProPublica’s article was published this month, a lawyer representing Trump Media, Jason Greaves of Binnall Law Group, sent ProPublica a letter demanding an “immediate retraction.” The letter called the article “false and defamatory” but provided no evidence to show that anything in the story was inaccurate.

Following the whistleblower’s complaint to the board, the company retained an outside attorney to investigate and interview staff, a person with knowledge of the company told ProPublica. It is unclear what the outcome of this review was or whether it is ongoing. Governance experts told ProPublica that company boards have a duty to respond to red flags suggesting corporate wrongdoing.

In perhaps the most serious accusation, the letter alleges that “Nunes’ missteps have placed us at significant risk of legal action from our regulators, our suppliers, our shareholders and our employees, and have already given rise to disputes.

The letter does not give examples of what Nunes did that could prompt action from regulators.

The letter says that not only is Trump Media understaffed – with only “20 technical employees” – but that Nunes has blocked the hiring of Americans. LinkedIn profiles and an invoice obtained by ProPublica show that about a half-dozen people are listed as being based in the Balkans and working for Trump Media, in tasks including software engineering and customer support.

The front page of Truth Social contains the tagline: “Proudly Made in the United States of America.” 🇺🇸”

The whistleblower letter portrays Nunes, who left a two-decade career as a California congressman in 2022 to become CEO of Trump Media, as ill-equipped to run a tech company.

“Mr. Nunes consistently lied, targeted employees and mismanaged company resources by assigning critical functions to unqualified members of his entourage,” it states.

The letter does not provide examples of Nunes’ alleged lies or identify members of his entourage.

The tone of the letter is more sad than angry.

“We approached this matter with patience, kindness and grace, hoping for improvement, but the situation has only deteriorated,” the letter said, adding: “We remain fully committed to the mission of restoring and defending freedom of expression on social networks. »

Another concern in the letter concerns money. Employees were forced to sell their $20 shares in the company before it went public, leaving them with no stake in the company and costing them dearly, according to the letter. The company’s shares briefly traded at more than three times that price after their March IPO. After falling as low as $12 in September, it closed this week above $29.

The letter includes a warning that if the board does not act, problems could spread to the general public and Trump’s media could be seriously damaged.

“The longer these internal failures – ranging from executive mismanagement to broken promises to legal vulnerabilities – go unaddressed, the more likely they are to leak, likely triggering a public relations crisis,” the letter said. “If these matters become public, they will seriously damage Truth Social’s reputation, erode public trust and attract negative media attention. »