Investors Sue Trump and Bondi Over TikTok Spinoff That Leaves ByteDance 20% U.S. Stake
Two investors, including a shareholder in Meta, sued President Trump and AG Pam Bondi over the January deal letting TikTok form a majority American-owned joint venture, alleging it breached a 2024 U.S. divestiture law. They claim resulting financial harm to their Meta and Alphabet stakes and seek to renegotiate terms.
1. Lawsuit Filed by Investors
Investors Zhaocheng Anthony Tan and Garrett Reid, a Meta shareholder, filed suit against President Trump and AG Pam Bondi, challenging the January approval of a deal that spun off TikTok’s U.S. operations into a majority American-owned entity.
2. Alleged Law Violation and Remedies
Plaintiffs allege the deal violated the 2024 TikTok law requiring ByteDance’s full divestiture, arguing maintained ByteDance control caused tangible financial harm to their Meta and Alphabet holdings; they seek renegotiation of the spin-off’s terms to prevent ongoing parent‐company influence.
3. Potential Impact on Meta and TikTok Venture
A successful suit could impose stricter conditions on TikTok’s U.S. joint venture governance and content oversight, altering competitive dynamics for Meta; however, legal timelines and hurdles make the ultimate effect on operations and stakeholder returns uncertain.