San Francisco has sued Trump Media & Technology Group over a Truth Social service that lets paying customers see certain posts before everyone else. The city claims the arrangement gives wealthy investors access to potentially market-moving government information before ordinary investors see it.
Per Fox, the lawsuit targets Truth API, a subscription service that provides early access to posts from some of Truth Social’s biggest accounts. San Francisco City Attorney David Chiu says the service amounts to a “pay-to-play scheme” because subscribers can receive President Donald Trump’s posts before they become publicly available.
The service costs between $60,000 and $100,000 per month. Chiu’s office is asking a court to block the service and impose civil penalties under California’s Unfair Competition Law.
The service is designed to give paying customers a head start
Chiu’s argument centers on the speed at which financial firms can react to information. He claims subscribers can receive Trump’s posts before they are publicly available, giving firms more time to analyze the information and potentially make trades.
“Truth Social has knowingly created a marketplace for insider trading by giving high paying subscribers an unfair advantage over ordinary investors in the market,” Chiu said. He characterized the service as “a pay-to-play scheme for early access to the president’s market-moving government decisions.”
The city attorney also pointed directly at the price of the subscription. Chiu said, “No ordinary person can pay that fee,” while claiming that early subscribers are largely high-frequency trading firms.
The lawsuit also raises questions about Trump’s financial connection to the company. Chiu said Trump owns roughly 41% of Trump Media and alleged that he “is personally benefiting from this business scheme.”
Trump Media has rejected the allegations. A company spokesperson told media that the attorneys behind the case do not understand the distinction between public and nonpublic information.
“The People of California should outsource their future lawsuits to AI chatbots,” the spokesperson said. He continued with “unlike the left-wing activists masquerading as attorneys who filed this lawsuit, will grasp the basic distinction between public and nonpublic information.”
The legal fight is not limited to San Francisco’s case. The Intercept and the Freedom of the Press Foundation have filed a separate lawsuit alleging that Truth API violates the First and Fifth Amendments. The separate case has also drawn support from dozens of former federal prosecutors and agents through a court filing, according to the report.
Published: Sep 23, 2026 12:45 pm