Trump, Bondi are being sued by shareholders for alleged violations of the TikTok deal
Sen. Pete Ricketts, R-Neb., joins ‘Varney & Co.’ to discuss TikTok data security concerns, growing pressure on Iran and the fight to keep the government open.
President Donald Trump and Attorney General Pam Bondi on Thursday were sued over their handling of the TikTok deal that was finalized in January, according to a lawsuit filed by two shareholders of the competing technology companies.
The plaintiffs argue that Trump approved a joint venture that failed to fully sever the app’s operating ties with China, granted several illegal extensions and that Bondi failed to investigate alleged violations as required by the Protecting Americans from Foreign Adversary Controlled Applications (PAFACA) Act, which authorized the Chinese company TikTok, ByTok25, ByTok 25, ByTok 25 before time.
The petition was filed by Zhaocheng Anthony Tan, a shareholder in Alphabet, and Garrett Reid, a shareholder in Meta Platforms, who said the TikTok deal also led to a drop in Meta and Google’s stock.
“For a law to mean something, it must be followed, even—perhaps especially—by the President,” says the lawsuit, filed by the Public Integrity Project. “Defendants violated the law and defied the will of Congress. Plaintiffs brought this lawsuit to ensure that such violations, and such subversion, do not continue.”
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Trump in January supported the launch of The Joint Venture LLC, a seven-member American board that allowed TikTok to continue operating in the US. (Getty Images)
Under the current agreement, TikTok was spun off from a separate US-owned company to continue operating in the country, satisfying an executive order issued by Trump on September 25 last year. The majority American joint venture gives US businesses an 80.1% stake, while parent company ByteDance retains 19.9%.
“In short, under the announced agreement, ByteDance will retain control over all of TikTok’s significant assets,” the lawsuit said. “Such an agreement would undermine the very purpose of the TikTok Act, as ByteDance could continue to promote Chinese propaganda and censor content it does not like, the very harm the law was intended to prevent.”
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Attorney General Pam Bondi holds a news conference at the Department of Justice on Thursday, December 4, 2025. (Tom Williams/CQ-Roll Call, Inc via Getty Images)
According to the lawsuit, the American business of TikTok does not actually own the algorithm of the application but instead cooperates with ByteDance, violating the legal prohibition of algorithmic cooperation. While ByteDance retains ownership and license of the algorithm, TikTok US will “retrain, test, and update” it using US user data.
The company’s US budget, legal compliance and commercial work will also be overseen by ByteDance CEO Shou Chew, who will remain on the board of directors of TikTok US, making other working relationships that the lawsuit says prohibited.
The petition also claims that Trump violated PAFACA, which allows the president to grant a one-time extension for no more than 90 days, and only with the necessary certification from Congress. Trump reportedly approved five separate extensions — lasting 75, 75, 90, 90, and 120 days — that far exceed the legal limit.
The petition alleges that Trump unlawfully directed Bondi not to investigate or enforce any violations of PAFACA, in violation of the act.
Shou Zi Chew (C), CEO of TikTok, arrives to attend the inauguration of Donald Trump as the next US president at the US Capitol in Washington, DC, on January 20, 2025. (Shawn Thew/POOL/AFP via Getty Images)
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The lawsuit claims that Trump’s actions harmed investors in TikTok’s competitors. The plaintiffs noted that when the deal was made in January, Alphabet’s stock quickly fell from $330.84 to $328.43.
Similarly, Meta stock fell from $760.66 to $748.91 at the time of the first draft announcement in September 2025, as it appeared that the rule might not be enforced.
