Former CEO of 3Com, Robert Scott Murray, has pleaded guilty to fraud involving a scheme to artificially inflate the share price of Getty Images. Murray owned roughly 300,000 shares of Getty Images Holding Inc. in April 2023 and sought to boost the stock's price to unload his position for a greater profit. He issued a series of news releases calling on Getty Images to sell itself or add him to its board through his venture investment business, Trillium Capital. Trillium then announced a supposed bid to acquire Getty Images at $10 a share, but the bid was called 'false and misleading' by the Securities and Exchange Commission (SEC). Murray sold all of his Getty shares within an hour for approximately $1,486,467. Murray will appear in federal court in Boston at a later date [03bd0c6e].
This news of fraud involving Getty Images shares adds to the existing legal troubles faced by Trump Media & Technology Group (TMTG). Executives at TMTG have been accused of insider trading, with allegations that they illegally made $22 million after the company announced a deal to go public. However, it's important to note that the indictment does not implicate Trump or TMTG in the insider trading scheme [87a6e717].
TMTG's shares have experienced significant volatility since going public, with a surge in value followed by a decline. The company reported small revenues and significant losses for the first quarter of 2024 [51155259] [44e916d8].
TMTG went public on the Nasdaq on March 26 and saw its share price drop by over 70 percent after its debut. However, the share price has since rebounded [44e916d8]. TMTG CEO Devin Nunes has stated that the company is 'well-capitalized' and is exploring potential mergers, acquisitions, and live TV streaming options [44e916d8].
These financial challenges add to the concerns about the company's valuation, low revenues, high losses, and fears of a sudden sale of a large number of shares by Trump to raise money [be015a3a]. Despite these challenges, some investors continue to support TMTG, particularly due to its principal asset, Truth Social [be015a3a].
The outcome of the insider trading trial and the recent financial loss reported by TMTG could have further implications for the company's executives, as well as for the broader perception of the company and its stock performance [87a6e717] [44e916d8].