New SEC filing and reaudited financial statement cause Trump Media's stock prices to decline.

• The newly hired public accounting firm submitted an updated inspection of the company's finances after the last auditor was charged with fraud.
• The Nasdaq-listed media company is predominantly owned by former President Donald Trump.
• Days after the SEC accused BF Borgers CPA of "massive fraud," Trump Media hired Semple, Marchal & Cooper, LLP as its new auditor.

The newly hired public accounting firm submitted an updated inspection of the company's finances on Monday, following the last auditor's fraud charges by the U.S. Securities and Exchange Commission.

On Monday, shares of Trump Media experienced a decline of more than 7% following the announcement. By 1:00 p.m. ET, the stock had fallen approximately 6%.

The media company, which is majority-owned by former President Donald Trump and trades as DJT on the Nasdaq, announced that its revised registration statement includes a reaudit conducted by the Phoenix, Arizona-based firm Semple, Marchal & Cooper, LLP.

The social media platform Truth Social, which is backed by the company, announced in a press release that its recent filing is an amendment to a registration statement from mid-April and does not involve any new shares being offered.

SMC served as our independent auditor, allowing us to file an Amended Registration Statement, which we hope the SEC will promptly review, according to Trump Media CEO Devin Nunes in a press release.

Trump Media replaced its auditor, BF Borgers CPA, with Semple, Marchal & Cooper, LLP in early May. Three days before the announcement, the SEC charged BF Borgers with "massive fraud" that affected over 1,500 filings.

The "sham audit mill" was accused by the federal regulatory agency of not adhering to auditing standards and misrepresenting to clients that their work would comply with those standards.

Benjamin Borgers, owner of BF Borgers, and the company agreed to pay $14 million in civil penalties and be permanently banned from auditing public companies, as stated by the SEC.

Although Monday's stock decline, Trump Media's market capitalization is nearly $7.5 billion, which critics argue is excessively high given the minimal revenue the company has reported.

According to data, it seems that Truth Social, the company's only product, is having difficulty retaining its user base, which generates only a small fraction of the traffic enjoyed by established social media giants like X and Facebook.