Alphabet Shareholder Sues Trump, Bondi Over TikTok Spinoff Approval
Two investors, including Alphabet stakeholder Zhaocheng Anthony Tan, sued Donald Trump and Pam Bondi for approving a deal that allows ByteDance to retain control over TikTok’s key operations. They claim the spinoff violates a law mandating divestiture, causing financial harm to shareholders in competing firms.
1. Lawsuit Filed by Shareholders
On Thursday, investors Zhaocheng Anthony Tan, an Alphabet stakeholder, and Garrett Reid filed a suit against former President Donald Trump and former Attorney General Pam Bondi, challenging approval of a deal that would spin off TikTok into a U.S.-owned entity.
2. Alleged Legal Violations
The plaintiffs argue that the agreement allows ByteDance to maintain control over TikTok’s core operations, contravening a statute requiring its Chinese parent to divest or face a ban and resulting in financial harm to investors in rival tech firms.
3. Investor Remedies Sought
The lawsuit seeks renegotiation of the spin-off terms to prevent political censorship powers by administration allies, and aims to address the claimed impediment to shareholders’ financial recovery without calling for an outright ban on TikTok.