Eric Trump Announces Lawsuit Against Jen Psaki, MS NOW for 'Blatant Lies' About China Business Ties

Eric Trump announced Friday that he will be suing MS Now’s Jen Psaki and the network for allegations she made that he accompanied his father, President Donald Trump, to China to further his own business interests.

In a segment that aired this week after Eric Trump arrived in China, Psaki said that he is on the board of a company called ALT5 Sigma.

“Today, while Eric is in China with his dad, the Financial Times is reporting that this company has a memorandum of understanding to explore a potential deal with a Chinese chip manufacturer [Nano Labs] to build AI data centers and a whole bunch of other AI-related stuff,” she said.

“It certainly seems like Eric might be getting a little more than just quality time with his dad out of this China trip, doesn’t it?” the MS Now host said.

Trump responded to the segment, posting Friday on X that he intends to sue both Psaki and MS Now.

“Contrary to her [monologue] and blatant lies, I have NEVER been on the board of ALT5 — not now, not ever. Any person with basic access to Google and willing to open a company’s annual report or proxy statements would know this,” he wrote. “I have had zero involvement in any merger discussions involving any public entity I do not run or control.”

A proxy statement for ALT5 filed with the Securities and Exchange Commission last September lists Trump as a board observer, but not a board member.

I had seen an article about MSNOW’s claims, the other day. The lies and hypocrisy from the left know no bounds. Having said that, I’m curious about who originally made the false claim.

The article says that Psaki alleged the Financial Times was reporting that Eric Trump was on ALT5 Sigma’s board. I’m wondering if she was lying about that or if she was repeating a false claim made by Financial Times. I’m also curious what about what the difference is between a board member and a board observer.

BRAVE AI:

The primary difference between a board member and a board observer lies in voting rights and fiduciary duties. Board members are elected or appointed governing officials with the legal authority to vote on company decisions, set strategy, and hold formal fiduciary duties to act in the best interest of the corporation. In contrast, board observers are non-voting participants who attend meetings and receive information to monitor company performance, typically representing investor interests without assuming legal liability for corporate governance.

Key distinctions include:

Decision-Making Power:

Board members have formal voting rights and can directly influence or approve resolutions. Board observers may participate in discussions and offer advice, but they cannot vote on matters submitted for board approval.

Legal Liability and Duties:

Board members owe strict fiduciary duties (such as care and loyalty) to the corporation and can be held liable for breaches of these duties. Board observers generally do not owe fiduciary duties to the corporation, significantly limiting their legal exposure regarding corporate mismanagement or securities law violations.

Source of Rights:

Board membership is established through shareholder elections or statutory appointment. Board observer rights are typically granted via contract, such as a stockholder’s agreement or side letter, often to venture capitalists or angel investors.

Exclusion from Meetings:

While both can access standard meeting materials, the board can exclude observers from confidential sessions (e.g., discussions on litigation or executive compensation) to protect attorney-client privilege or manage conflicts of interest.

AI-generated answer. Please verify critical facts.

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