San Francisco has taken legal action against the parent company of Truth Social, alleging that its premium data-feed service gives wealthy investors an illegal head start on market-moving posts by President Trump. City Attorney David Chiu filed the lawsuit Monday, accusing Trump Media & Technology Group (TMTG) of violating California's Unfair Competition Law, which prohibits insider trading and similar practices.
The dispute centers on TMTG's “Truth API,” a product launched in July that provides investment firms with real-time access to posts from top Truth Social accounts. The company initially charged $100,000 for this service, later offering a discounted $60,000 rate for firms signing a three-year contract. Chiu argues that this setup monetizes nonpublic information obtained through Trump's government role, placing everyday investors at a severe disadvantage.
“These everyday investors are placed at a substantial disadvantage to sophisticated firms willing and able to pay extraordinary sums for advanced access to market-moving information,” Chiu wrote in the lawsuit. “Trump Media’s scheme is unprecedented in its monetization of nonpublic information obtained through government service and sold on the private market.”
The lawsuit highlights a specific Truth Social post from April 9, 2025, in which Trump wrote “THIS IS A GREAT TIME TO BUY!!!” just before he announced a 90-day pause on tariffs. The stock market rallied later that day, illustrating the potential impact of such posts. The filing notes numerous other instances where Trump's announcements on Truth Social influenced financial markets, as the information was not public at the time of posting.
Trump is the largest shareholder in TMTG and co-founded Truth Social after being banned from major platforms following the January 6, 2021, Capitol attack. Those platforms have since reinstated him. The lawsuit also cites bipartisan criticism of the Truth API plan. Sen. Bill Cassidy (R-La.) called it “wrong” and “a form of buying access,” while Sen. Lisa Murkowski (R-Alaska) questioned the ethics of paying for early information that could move markets, drawing a contrast with the challenges of affordable housing and education in her state.
TMTG has dismissed the lawsuit, with a spokesperson telling The New York Times: “The people of California should outsource their future lawsuits to AI chatbots who, unlike the left-wing activists masquerading as attorneys who filed this lawsuit, will grasp the basic distinction between public and nonpublic information.”
The case adds to mounting scrutiny over how Trump's social media activity interacts with financial markets. As Trump's foreign policy announcements and economic statements continue to move markets, the legal challenge could set a precedent for how such platforms are regulated.
The Hill has reached out to TMTG for further comment. The lawsuit is likely to spark debate over the intersection of social media, insider trading laws, and political influence, with implications for both Silicon Valley and Wall Street.
