Markets
DJT Media & Technology (TMT) Faces Stock Plunge After Accounting Firm Shuffle
Jun
DJT Media & Technology (TMT) encountered a dramatic drop in its stock value, plummeting over 7% on Monday afternoon. The nosedive followed the submission of a revised examination of its finances by a new public accounting firm overseeing the social media platform associated with former President Donald Trump.
Truth Social’s Troubles
Truth Social’s holding firm, linked to Donald Trump, revealed Semple, Marchal & Cooper LLP conducted a revised audit. The audit covered 2022 and 2023. This followed a prior audit submitted on April 15. The count of TMTG common shares for registration remained unchanged.
Truth Social’s revised audit ensures transparency, yet unchanged TMTG share count may disappoint investors seeking growth, WSJ Subscription Offers said.
CEO’s Optimism Amid Turbulence
Devin Nunes, CEO of DJT Media, expressed gratitude towards SMC for their role as the independent auditor. He emphasized their efforts in facilitating the submission of an Amended Registration Statement. Nunes voiced confidence in the SEC’s expeditious review of the matter.
Treasury Yield Declines Signal Shift in Equities Market
The 10-year Treasury yield has recently dipped below a crucial threshold, marking a significant shift in the financial landscape…
Accounting Firm Fallout
The shift in auditors stemmed from the fallout with the former auditing firm, BF Borgers CPA. The Securities and Exchange Commission (SEC) accused the firm and its proprietor, Benjamin F. Borgers, of egregious lapses in adhering to Public Company Accounting Oversight Board (PCAOB) standards across more than 1,500 SEC filings from January 2021 to June 2023.
SEC’s Allegations
The SEC charged BF Borgers CPA with fabricating audit records and misleading clients on compliance, resulting in $14 million in fines. Both BF Borgers and Benjamin Borgers are permanently prohibited from practicing accounting. These penalties are effective immediately as mandated by the SEC.
The transition in auditing firms and the accompanying regulatory scrutiny have cast shadows over the future trajectory of DJT Media & Technology (TMT), leaving investors wary amidst the turbulent financial landscape.
Get a 2-year digital subscription to The Economist and Barron’s at an incredible 77% off. Access premier market and global news sources via mobile apps and PCs, including audio articles, podcasts, and archives. Instant delivery ensures immediate access upon purchase.