Digital World Acquisition (NASDAQ:DWAC) stock is on the move Friday after the special purpose acquisition company ( ) reached a settlement on fraud charges from the U.S. Securities and Exchange Commission ( ).
This settlement has to do with a few actions of Digital World Acquisition that the SEC took issue with. The company, which is planning to take former President Donald Trump’s Trump Media and Technology Group () public, may have to pay $18 million as a result.
The settlement will only go into effect if the company completes its merger with the Truth Social parent company. If it doesn’t and returns money to investors, then DWAC won’t have to pay that $18 million settlement.
The issues brought up by the SEC include insider trading of DWAC stock, negotiations with Trump Media and Technology Group before the initial public offering () and former Digital World CEO Patrick Orlando’s failure to disclose his interest in a separate deal with TMTG.
What This Means for DWAC Stock
Digital World Acquisition hasn’t expressed any intent to back down from its deal with Trump Media and Technology Group. Instead, it looks like the company will move forward with the SPAC merger, which has a deadline of Jan. 1, 2025.
Investors are also seeing heavy trading of DWAC stock following today’s SEC news. That has more than 415,000 shares of the stock changing hands, as compared to its daily average of around 304,000 shares.
DWAC stock is up 20.4% as of Friday morning.
There’s more stock market news traders will want to read about below!
We’ve got all of the latest stock market news that investors need to know about on Friday! A few examples include why shares of BioNexus Gene Lab (NASDAQ:BGLC) stock are up today, the biggest pre-market stock movers this morning and more. You can find out all about these topics at the following links!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.