Andrew Northwall, the Chief Operating Officer (COO) of Trump Media & Technology Group (TMTG), the company behind the social media platform Truth Social, has resigned, according to a recent report filed with the U.S. Securities and Exchange Commission (SEC). Northwall stepped down at the end of last month, and the company says they will handle his duties internally, though they didn’t give many details. He had been with the company since December 2021.

Legal Fight Over Company Shares

Along with the COO’s resignation, TMTG is dealing with a legal battle over stocks. Last month, a Delaware court ruled that TMTG must release nearly 800,000 shares to ARC Global Investments II, an investor that’s been fighting with the company over how many shares it should receive. The disagreement started after TMTG merged with Digital World Acquisition Corp. The court’s ruling gives both TMTG and ARC 30 days to appeal if they want.

This court ruling adds to TMTG’s problems. The company has been losing money, reporting a $58.2 million loss last year while only making $4.1 million in revenue. Truth Social, the platform created by former President Donald Trump after he was banned from Twitter and Facebook, hasn’t been able to make enough money to keep up with its costs.

Stock Price Swings and Uncertainty

The news of the COO’s resignation and the legal issues over stock shares have also affected TMTG’s stock, which some experts call a “meme stock.” These types of stocks often gain attention and shoot up in value thanks to online buzz, not necessarily because the company is doing well. When TMTG first started trading on the stock market in March 2024, its stock price hit a high of $79.38. Since then, the stock has been unstable, with its value rising and falling as individual investors trade the stock more than larger financial institutions.

Recently, TMTG stock hit its lowest point ever when its biggest shareholder, former President Donald Trump, became eligible to sell his stake in the company. Despite these struggles, the stock rose slightly to $16.20 just before the market opened last Friday. It’s unclear if this small increase signals a long-term recovery or just a temporary bump in price.

What Lies Ahead?

As TMTG deals with leadership changes and financial troubles, investors will be watching closely to see how the company handles its issues. The company’s ability to make more money, cut costs, and resolve its legal battle with ARC will be key in determining whether its stock stabilizes. Additionally, former President Trump’s decisions about what to do with his shares could greatly affect the stock’s value.

For now, TMTG faces a tough road ahead as it tries to regain stability and investor confidence amidst ongoing challenges. The wild swings have many investors looking for the exit.