2023-07-04 05:00:24 ET
Digital World Acquisition ( NASDAQ: DWAC ) has reached an in-principle settlement with the Securities and Exchange Commission's Enforcement Division in connection with its investigation into the SPAC's deal to take Donald Trump's social media company public.
The settlement is not definitive and is subject to the SEC's approval. In connection with the settlement, if the SPAC amends its IPO filings in accordance with the SEC's requirements, it will pay a civil money penalty of $18M to the regulator after the merger closes.
If approved, the SEC will enter a cease-and-desist order finding DWAC violated certain antifraud provisions in connection with its IPO filings.
This relates to certain statements and omissions relating to the discussions the SPAC had with Trump Media & Technology Group regarding the proposed merger.
Three investors were arrested for alleged insider trading, as they earned over $22M in illegal profits after buying Digital World Acquisition ( DWAC ) shares when they secretly learned about the SPAC's plan to buy Trump's media firm.
"Failing to settle with the SEC would create a substantial risk of protracted litigation, which could inhibit the SPAC's ability to consummate the business combination with Trump Media," said Digital World Acquisition ( DWAC ).
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- Three arrested for illegal trading before Trump SPAC merger
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For further details see:
Trump SPAC Digital World reaches in-principle settlement with SEC