Investors Sue Trump, Bondi Over TikTok Deal They Say Broke the Law
Investors allege President Trump exceeded PAFACA limits and approved a January joint venture that left ByteDance with algorithm control and 19.9% ownership.
Washington ExaminerBig Tech executives sue Trump and Bondi over TikTok deal
Fox BusinessTrump, Bondi sued over TikTok deal that allegedly 'subverted' congressional authority and violated federal law
CBS NewsTech investors sue Trump administration, accusing it of violating TikTok ban
NPRPresident Trump, Pam Bondi sued over sale of TikTok assets
NBC NewsTrump's TikTok deal benefited firms that 'personally enriched' him, lawsuit says
Overview
Two tech investors filed a lawsuit Thursday in the U.S. Court of Appeals for the District of Columbia alleging President Donald Trump and Attorney General Pam Bondi unlawfully approved the January TikTok deal.
The suit alleges the actions violated the Protecting Americans From Foreign Adversary Controlled Applications Act, which required ByteDance to divest by Jan. 19, 2025, and allowed only one 90-day extension.
The plaintiffs, Zhaocheng Anthony Tan and Garrett Reid, are represented by the Public Integrity Project and Brendan Ballou, who said the deal rewarded allies and DOJ failed to investigate as required by the statute.
Under the announced joint venture, U.S. entities would hold an 80.1% stake while ByteDance retained 19.9%, and the petition alleges Trump approved five extensions lasting 75, 75, 90, 90, and 120 days.
The suit asks the court to declare the extensions unlawful and the January joint venture noncompliant with PAFACA, and it cites investor harm, noting Alphabet's stock fell from 330.84 to 328.43 and Meta's from 760.66 to 748.91.
Analysis
Center-leaning sources frame the story as potential abuse of power and law-avoidance by emphasizing phrases like "flouting the law," focusing on plaintiffs and a public-integrity group, and highlighting ties between buyers and Trump allies. They foreground DOJ turmoil and enforcement collapse while placing critical quotes and selective facts prominently to build a narrative of favoritism.
FAQ
PAFACA is a law requiring ByteDance to divest TikTok's U.S. operations by January 19, 2025, with only one 90-day extension allowed, to eliminate foreign adversary control including over the recommendation algorithm.
The lawsuit alleges Trump granted five unlawful extensions (75, 75, 90, 90, 120 days) exceeding the one 90-day limit, approved a January joint venture where ByteDance retains 19.9% ownership and algorithm control, and Bondi failed to investigate as required.
Plaintiffs are Zhaocheng Anthony Tan (Alphabet shareholder) and Garrett Reid (Meta shareholder); they claim harm from stock price drops (Alphabet from 330.84 to 328.43, Meta from 760.66 to 748.91) due to the noncompliant deal benefiting TikTok over competitors.
U.S. entities hold 80.1% stake, ByteDance keeps 19.9% and owns the recommendation algorithm (licensed to U.S. TikTok), which U.S. side retrains on U.S. data; ByteDance CEO Shou Chew oversees budget, compliance, and sits on the board.
