The city of San Francisco has filed a lawsuit against Trump Media & Technology Group, the parent company of Truth Social, alleging its "Truth API" service violates California's Unfair Competition Law. The suit, filed in San Francisco Superior Court, claims the service creates an "insider trading market" by selling early access to potentially market-moving social media posts from Donald Trump and other officials.
The Truth API service provides subscribers, reportedly high-frequency trading firms, with a data feed for up to $100,000 per month. According to the complaint, this gives paying clients as much as a 50-millisecond advantage before the posts are seen by the public, enabling them to trade on the information. The city is seeking to block the service and impose civil penalties.