DJT Stock Drops 6% To One-Month Lows — Trump Sued Over Early Access To Truth API

Two media groups have launched a legal challenge against Truth Social’s service charging high-paying subscribers for expedited access to presidential posts.

• The Intercept Media and the Freedom of the Press Foundation filed a federal lawsuit in Manhattan.
• The dispute centers on "Truth API," a subscription service costing up to $100,000 monthly that delivers machine-readable feeds of platform posts.
• Plaintiffs allege the system violates First and Fifth Amendment rights by selling preferential access to public government information.

A news outlet and a press freedom advocacy group filed a federal lawsuit on Wednesday seeking to stop a program that sells early access to President Donald Trump's public statements.

The complaint, filed in the U.S. District Court for the Southern District of New York, accuses the president and his social media company of running an illegal scheme by charging high fees to access official government communications ahead of the general public.

Trump Media & Technology Group (DJT) share price dropped 6% on Wednesday, down for the third straight session and to a one-month low. 

The controversy centers on "Truth API," a service launched by Truth Social's parent company. First unveiled in July, the subscription service costs between $60,000 and $100,000 per month. In exchange, subscribers receive automated, machine-readable data feeds delivering posts from the platform's most prominent accounts in fractions of a second.

In addition to President Trump, the subscription covers early access to statements from key government officials and departments, including the White House, Vice President JD Vance, FBI Director Kash Patel, and the leaders of Health and Human Services and Transportation.

Because presidential postings on Truth Social frequently contain major economic policy decisions, military updates, and official government announcements without simultaneous White House press releases, plaintiffs argue the platform functions as the exclusive source for critical news.

"There is no legitimate interest, let alone a significant one, in permitting President Trump to profit from selling government information," the civil suit read. 

Constitutional Violations Alleged

The legal action was brought by news organization The Intercept Media and the non-profit Freedom of the Press Foundation. The plaintiffs argue that charging "unreasonable sums" for public statements violates equal access rights guaranteed under the First and Fifth Amendments of the U.S. Constitution.

According to the complaint, President Trump stands to profit personally from the arrangement due to his major equity stake in Trump Media, which is held in a trust managed by his eldest son. The lawsuit requests a judicial order declaring the exclusive posting of public government information on the platform unconstitutional and seeks to bar executive officials from continuing the practice.

Along with the president, the lawsuit names executive assistants Natalie Harp and Dan Scavino, the Executive Office of the President, and the White House Office as defendants.

Truth API Already Has 10 Corporate Subscribers

Trump Media defended its service, pointing out that government information is regularly reported across numerous outlets and platforms, many of which also utilize subscription APIs. 

The company emphasized that Truth Social was created as a platform for open expression. During a recent earnings call, leadership confirmed that more than ten corporate agreements for the API service had already been executed.

The legal challenge comes shortly after Trump Media reported a second-quarter loss of $238 million, an outcome driven primarily by declines in its cryptocurrency holdings.

DJT Stock: Retail View 

Retail sentiment on Stocktwits was ‘bearish’ with ‘normal’ message volumes. Retail chatter on the stock was up 31% over the past week. 

DJT stock has lost nearly 37% year-to-date. 

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