San Francisco Sues Trump Media Over Early Access to Trump Posts
San Francisco is suing Trump Media & Technology Group (TMTG), the parent company of Truth Social, for selling early access to posts from President Donald Trump and other influential figures. The lawsuit alleges that TMTG's new service, Truth API, which charges $100,000 per month for early access to top accounts on the platform, facilitates insider trading by giving paying subscribers a financial advantage over regular investors. The city attorney claims this practice violates California’s Unfair Competition Law and federal anti-corruption laws. The lawsuit cites specific instances where Trump's posts led to significant market movements, such as cattle futures declining after an announcement about ground beef tariffs. TMTG reported a net loss of $238 million earlier in the year but has defended Truth API by stating that markets already move on Truth Social content. The city is seeking an injunction against offering similar services and fines for each violation. This lawsuit follows another legal challenge from The Intercept, highlighting growing scrutiny over how TMTG monetizes politically sensitive information.
Topics: API access government regulation insider trading Truth Social