San Francisco Sues Trump Media Over Truth Social API Service
San Francisco sued Trump Media over its Truth Social API service, alleging it sells early access to market-moving presidential posts for $100,000 monthly, violating competition and insider trading laws.
The City of San Francisco has filed a lawsuit in a California court against Trump Media & Technology Group, the parent company of Truth Social, alleging a "corrupt business mechanism." The lawsuit claims the company violates California's unfair competition law and federal insider trading prohibitions.
At the center of the lawsuit is the company's new service, "Truth API," which charges selected clients $100,000 per month for early access to update feeds of the ten most influential accounts on the network, including Donald Trump's account and those of other senior figures.
According to the complaint, because Trump's social media posts often include administrative announcements with heavy economic significance, this constitutes providing early access to market-moving information. The lawsuit cites an August 21 incident where Trump posted an intention to exempt certain beef imports from tariffs, after which cattle futures dropped significantly when trading opened hours later.
"In today's markets, early access is worth millions of dollars. This business model has turned public trust into private property," said San Francisco City Attorney David Chiu. "Interim company spokesperson Kevin McGurn even admitted at the service's launch that 'markets already move based on Truth Social posts.'"
According to the report, the company posted a net loss of more than $238 million earlier this year, and the lawsuit alleges the new service aims to make the struggling company profitable at the expense of the public and small investors. The city is asking the court to ban the company from continuing to offer the service and to impose a penalty of $2,500 for each violation.
