Trump Media tells Nasdaq CEO of ‘potential market manipulation’

On April 18, 2024, Trump Media Technology Group sent a letter to Nasdaq regarding suspected short selling activity in the shares of the company. The letter from Devin Nunes, CEO of Trump Media, to Nasdaq CEO Adena Friedman states in part: “I write to bring your attention to potential market manipulation of the stock of Trump Media & Technology Group Corp., which operates the Truth Social platform and has traded on the Nasdaq Stock Market under the ticker ‘DJT‘ since March 26, 2024. As you know, ‘naked’ short selling-selling shares of a stock without first borrowing the shares of stock deemed difficult to locate-is generally illegal pursuant to Securities and Exchange Commission Regulation SHO. As of April 17, 2024, DJT appears on Nasdaq’s ‘Reg SHO threshold list,’ which is indicative of unlawful trading activity. This is particularly troubling given that ‘naked’ short selling often entails sophisticated market participants profiting at the expense of retail investors…In light of the foregoing, and Nasdaq’s obligation and commitment to protect the interests of retail investors, please advise what steps you can take to foster transparency and compliance by ensuring market makers are adhering to Reg SHO, requiring brokers to disclose their ‘Net Short’ positions, and preventing the lending of shares that do not exist.”