Lawsuit Alleges Hacking and Takeover Attempt in Truth Social Deal
Swider’s Alleged Actions
According to a Florida lawsuit filed by Benessere Investment Group, Eric Swider allegedly used stolen Mailchimp account credentials and a listserv belonging to Patrick Orlando to send an email to ARC II investors in the Truth Social deal on March 5. In the email, Swider criticized Orlando’s management of ARC II and DWAC, as well as his involvement in a separate lawsuit against DWAC filed the previous month.
“Mr. Orlando’s leadership has guided our common interests with DWAC directly into the arms of the SEC, the DOJ, lengthy delays and costly investigations,” Swider wrote. “By filing this lawsuit against DWAC, Mr. Orlando is destroying the value that may be realized upon consummation of the business combination by the Company and its members.”
Swider invited fellow investors to join him on Zoom calls to discuss their risk exposure due to what he described as ”leadership that continues to march us down a path of mis-information, hidden information, and self dealing.” Despite the critical tone, Swider added in the same email, ”I am not disparaging Patrick. I am sure he is an amazing Human being, Honest, hard working. Looking out for your best interest. He is good looking. He is cool. I like him. Nothing in this email is meant to be defamatory. He has been great as a leader. Patrick- you are Awesome!!”
Allegations of Attempted Takeover
Benessere’s lawsuit alleges that Swider attempted to gain control of the two companies involved in funding the Truth Social deal. The suit claims that Swider sought to obtain confidential information about ARC II and its investors, which was stored in a protected electronic storage account at Box.com held by Benessere.
The lawsuit also names Phillip Cano as a defendant, claiming that Swider “promised” Cano the role of DWAC president and “outsized” compensation in exchange for his participation in accessing Orlando’s Box account. Cano eventually became president of DWAC.
Swider’s Response and History with Orlando
In an interview with WIRED, Swider denied all allegations in the lawsuit, stating that publicly available SEC documents contradict many of the claims. He maintained that he never hired Cano as his assistant and that Orlando voted in favor of Cano’s compensation.
“I just think he’s never let go [of] the fact that I replaced him,” Swider tells WIRED. “I don’t know why it offends him so bad.”
The lawsuit appears to mark a bitter falling out between Orlando and Swider, who were previously business partners for years, with Swider formerly serving as a director at Benessere, according to his LinkedIn profile.
Additional Lawsuits Surrounding Truth Social
In addition to the Benessere lawsuit and Orlando’s separate suit in Delaware, there are several other ongoing legal battles associated with the Truth Social company:
- Early Trump Media employees Wess Moss and Andy Litinsky sued the company in Delaware court, alleging share dilution.
- Trump Media countersued Moss and Litinsky in Florida court, claiming their poor management delayed the deal.
- DWAC filed a lawsuit against Orlando in March, alleging that he intentionally delayed the Truth Social deal and should have his shares reduced as a result.
As of the time of writing, Benessere Group, Orlando, Swider, Cano, and Renatus Advisors have not responded to requests for comment or the lawsuit in court.
5 Comments
Oh, Truth Social’s in hot water now, who saw that coming?
So Truth Social is caught in the hacking lawsuit storm, didn’t see that plot twist!
Jameson Q. Lee: Hacking lawsuit? Truth Social’s getting a taste of its own drama, ironic isn’t it?
Trump’s platform hit by a lawsuit? This drama is better than reality TV!
Well, looks like Truth Social’s legal battles are just starting, buckle up!