Former U.S. President Donald Trump's media and technology company replaced its auditor BF Borgers, in response to charges of "massive fraud".
As per Reuters, Trump Media announced in a filing with the U.S. Securities and Exchange Commission (SEC) on Monday, that they had switched auditors to Semple, Marchal & Cooper, following the SEC's allegations against BF Borgers.
Meanwhile, the change was recommended and approved by the company's audit committee.
Borgers, the auditor of the Truth Social parent since 2022, agreed to a $12 million civil penalty and to cease practicing as accountants on SEC filings, as per the agency's statement.
However, Trump Media expressed optimism about the transition, stating in an email on Friday that they look forward to working with their new auditing partners.
According to the SEC, Borgers failed to maintain proper audit documentation, fabricated audit planning meetings, and at times, misrepresented previous audits as current ones.
Shares of Trump Media have witnessed significant volatility since they began trading on March 26, prompting the company to send a letter to Nasdaq CEO Adena Friedman last month, alerting the exchange to "potential market manipulation" in the stock.
Ahead of the premarket trading, Trump Media's shares were down approximately 2%.
