The Freedom of the Press Foundation and The Intercept filed a federal lawsuit against President Donald Trump and Trump Media & Technology Group (DJT). The legal action seeks to block Truth API, a subscription service providing early access to Trump’s Truth Social posts.
Subscribers reportedly pay up to $100,000 per month for the service. High-frequency trading firms utilize this access to gain an advantage on market-moving government announcements.
The lawsuit filed in the Southern District of New York argues the arrangement is corrupt and unconstitutional. Plaintiffs claim that selling preferential access to public information violates the First and Fifth Amendments.
Trump is the largest shareholder in Trump Media and stands to profit from the sale of his official communications. Trump Media defended the service as a standard platform practice and accused activists of attempting to harm the company.
Shares of DJT fell 6% following the news.