San Francisco has filed a lawsuit against the Trump Media & Technology Group, alleging that the company is facilitating insider trading through its Truth API service. The service, which charges $100,000 a month for early access to influential accounts on Truth Social, including President Trump’s, has raised concerns about market manipulation. The lawsuit claims that this scheme turns public trust into private property and disadvantages everyday investors.

According to the complaint, Trump Media’s interim CEO, Kevin McGurn, acknowledged that the service capitalizes on the high-stakes announcements made by President Trump, stating that 'markets already move on Truth Social posts.' A notable example cited was a post about lowering the price of ground beef, which led to significant declines in cattle futures when the market opened.

The lawsuit seeks to forbid Trump Media from offering similar services and imposes a fine of $2,500 per violation of California’s Unfair Competition Law. This isn’t the first legal challenge against Truth API; in August, The Intercept and the Freedom of the Press Foundation filed a joint lawsuit in a New York federal court, describing the service as 'extraordinary, corrupt, and unconstitutional.'

The city attorney, David Chiu, expressed concern, stating, 'In today’s markets, early access means millions of dollars. This business scheme has turned public trust into private property.' The case highlights the complex intersection of politics, media and financial markets, raising questions about the ethics of such practices.