SAN FRANCISCO, California — San Francisco is suing Trump Media & Technology Group, alleging its $100,000-per-month Truth Social data service creates an unfair trading advantage by allowing paying investors to receive President Donald Trump’s potentially market-moving posts before the general public.
City Attorney David Chiu filed the lawsuit in California Superior Court against Trump Media, which operates Truth Social. The complaint alleges the company’s “Truth API” violates California’s Unfair Competition Law and facilitates conduct that could violate federal insider-trading rules by monetizing advance access to government information.
Truth API, launched in August, offers financial firms rapid access to posts from Trump and other prominent accounts for up to $100,000 monthly, or about $60,000 per month under a multiyear agreement. In modern algorithmic trading, even a brief informational advantage can potentially be valuable.
The lawsuit cites Trump’s April 9, 2025, post saying, “THIS IS A GREAT TIME TO BUY!!!,” which appeared before he announced a 90-day tariff pause that was followed by a market rally. The complaint argues that paying firms could potentially trade on similar government announcements before ordinary investors see them.
Trump Media disputes the allegations and has characterized Truth API as a conventional financial-data product. A separate federal lawsuit filed by The Intercept and Freedom of the Press Foundation also challenges the service, while 53 former federal prosecutors and agents recently argued in a court filing that the arrangement may violate federal law.
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