Delaware Court Rules on Dispute Between Digital World Acquisition Corp. and ARC Global Investments II, LLC

Digital World Acquisition Corp., headquartered in Miami, FL, announced a failed expedited motion by ARC Global Investments II, LLC in its lawsuit against the company in the Court of Chancery of the State of Delaware. The lawsuit concerns claims by ARC, Digital World's sponsor, related to a disagreement over conversion shares owed upon the consummation of a Business Combination with Trump Media & Technology Group Corp. (TMTG).

ARC sought an expedited case schedule to allow for an injunction hearing before a shareholder vote scheduled for March 22, 2024. However, the court, on March 5, 2024, after hearing arguments, ruled against this request, allowing the shareholder vote to proceed as planned. The Chancery Court found Digital World's offer to place disputed shares into escrow sufficient to mitigate claims of irreparable harm from ARC, emphasizing the adequacy of public disclosures regarding the conversion of ARC's shares.

The court has also ordered both parties to submit a schedule by March 8, 2024, to resolve the action within 150 days post-Business Combination and to address how this litigation will move forward alongside a separate Florida litigation initiated by Digital World. CEO Eric Swider expressed relief at the court's decision, underscoring its importance as the company heads to the merger vote while prioritizing shareholder protection.