Trump Media Stock Tumbles as Appeals Court Upholds $83 Million Carroll Verdict

Trump Media & Technology Group (DJT) saw its stock price slide significantly in premarket trading following a crucial legal development. A federal appeals court has officially upheld the hefty $83.3 million defamation verdict awarded to E. Jean Carroll against former President Donald Trump.

The ruling came from the 2nd U.S.

Circuit Court of Appeals, which decisively rejected Trump's fervent request for a new trial. His legal team had challenged the verdict, arguing that the award was excessive and that the presiding judge had permitted the inclusion of improper evidence during the proceedings. However, the appellate court found no merit in these claims, affirming the original decision.

This means that Donald Trump is now obligated to either post a bond or deposit the full amount of the $83.3 million to continue any further appeals.

This development places significant financial pressure on the former president as he seeks to contest the judgment.

The defamation lawsuit at the heart of this verdict originated from comments made by Trump in 2019. At the time, he vehemently denied allegations from E. Jean Carroll, who accused him of sexual assault.

Carroll, a prominent writer, had previously secured a separate legal victory against Trump in May 2023. In that earlier case, a jury found Trump liable for sexual abuse and an initial act of defamation, awarding her $5 million in damages.

The performance of Trump Media's stock has been notably volatile since its debut on the market.

Its trajectory appears to be closely intertwined with public sentiment and developments surrounding Donald Trump's various legal and political engagements. This latest court decision serves as another stark reminder of how closely the company's market valuation can be influenced by events linked to its high-profile founder.