In a major blow to Trump Media & Technology Group, a Delaware judge has found the company legally responsible for breaching an agreement with ARC Global. The ruling, issued by Vice Chancellor Lori Will of the Delaware Court of Chancery, orders Trump Media to deliver a larger share of stock to ARC Global. This decision comes just three days before investors, including owner Donald Trump, are permitted to start selling their shares.

The judge's decision stems from the merger between Trump Media & Technology Group and Digital World Acquisition (DWAC), a blank-check firm, which took place in March to take the company public. It was determined that the former CEO of DWAC, Patrick Orlando, had miscalculated the amount of stock due to ARC Global as part of the merger.

While the judge did not agree with all of ARC Global's claims, describing some as "meritless" diversions, the ruling places the spotlight on Trump Media's obligations under the breached contract. As a result of this setback, confidence in the company has taken a hit, leading to a significant decrease in the value of Trump Media's stock.

Shares of Trump Media were down by 6.6% as of Tuesday's closing, trading at $16.14. This downward trend has caused the company to lose billions of dollars in value. Trump, who owns approximately 57% of the company's outstanding stock, has previously stated that he has "absolutely no intention of selling" his share. However, the success of his returns from the stock sale will heavily depend on the share price.

As investors prepare to offload their portions of the stock, there is growing concern that the stock's value could plummet even further. The ruling against Trump Media and the subsequent decline in stock price has raised questions about the company's viability and long-term prospects.

ARC Global, the primary party involved in the breached contract, will now receive a larger portion of Trump Media's stock, putting them in a stronger position to benefit from any potential recovery in the company's value. The ramifications of this ruling may also extend to other investors who have been closely watching the developments surrounding Trump Media.

While Trump Media may face some challenges ahead, the true impact of this ruling and the subsequent stock sell-off will only become clear in the coming days and weeks. For now, Trump Media finds itself at a critical juncture as it navigates the fallout from this legal setback and works to regain investor confidence.