San Francisco Sues Trump Media Over 'Truth API' Early Access
AI-generated image · Bay Street Wire
The city alleges a 'corrupt business scheme' that sells market-moving presidential posts to select clients for $100,000 a month.
San Francisco has filed a lawsuit in California state court against Trump Media & Technology Group, the parent company of Truth Social, alleging, as The Verge first reported, that the company is facilitating insider trading through a new service called Truth API.
According to reporting from The Verge, Truth API charges select customers $100,000 per month for early access to the 10 most influential accounts on the platform, including those of President Donald Trump and other White House officials. Trump Media interim CEO Kevin McGurn stated that "markets already move on Truth Social posts," a claim the San Francisco lawsuit supports by citing an August 21st post regarding ground beef import tariffs that led to a significant decline in cattle futures.
San Francisco city attorney David Chiu described the service as a "pay-to-play scheme" for access to government statements. The complaint alleges the service is an attempt to make the company profitable after Trump Media reported a net loss exceeding $238 million earlier this year. The suit further claims the API disadvantages retail investors by paywalling valuable information and violates federal anti-corruption laws and California’s Unfair Competition Law.
While Trump Media has not disclosed its client list, The Verge reports the company intends to market the product to large news organizations and AI companies. The city is seeking a judge to ban the service and impose fines of $2,500 per violation. This follows a separate lawsuit filed in August by The Intercept and the Freedom of the Press Foundation, which characterized the product as "unconstitutional."