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Lawsuit Filed Against Trump, Bondi Alleging Non-Enforcement of TikTok Divestiture Law

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Lawsuit Filed Against Trump, Bondi Over Alleged TikTok Divestiture Non-Enforcement

A newly formed organization, The Public Integrity Project, has filed a lawsuit against former President Donald Trump and former Attorney General Pam Bondi, alleging their failure to enforce a 2024 law requiring the divestiture of TikTok's U.S. assets from its Chinese parent company, ByteDance. The plaintiffs claim this alleged non-enforcement has caused them financial harm.

Background on TikTok Legislation

In 2024, a law was enacted, reportedly by then-President Joe Biden, that mandated TikTok cease U.S. distribution unless its Chinese parent company, ByteDance, established an American corporate base. The specified deadline for this action was the day before Donald Trump's potential return to office.

The legislation was intended to compel ByteDance to transfer control of its U.S. business operations to non-Chinese investors. This was due to concerns from lawmakers regarding potential Chinese government use of TikTok for data collection or disinformation dissemination. The law permitted only one extension for ByteDance to divest and was reportedly upheld by the Supreme Court.

Allegations in the Lawsuit

The lawsuit contends that despite the law's clarity, it was not enforced. Specifically, it alleges:

  • Then-President Trump granted multiple extensions, reportedly five, beyond the single extension permitted by the law.
  • Trump issued an executive order in September that paved the way for an agreement and subsequently approved a deal in January for the sale of TikTok’s U.S. assets.
  • Trump allegedly directed Attorney General Pam Bondi not to follow or enforce the law, which included requirements for the Justice Department to conduct investigations. The Department of Justice reportedly took no public investigative actions related to the matter.
  • The Public Integrity Project asserts that ByteDance continues to maintain ownership of TikTok’s core recommendation algorithm and manage other U.S. operations, while Oracle controls data, constituting an ongoing violation of the 2024 law.

Parties Involved

Plaintiffs:

  • The Public Integrity Project: Described as a law firm launched this year with the aim of addressing corruption. Its CEO, Brendan Ballou, is a former Justice Department prosecutor, and former Senator Russ Feingold serves on its advisory committee. This lawsuit marks the organization's first legal action.
  • Zhaocheng Anthony Tan: A software engineer holding stock in Alphabet Inc. (parent company of YouTube).
  • Garrett Reid: A software engineer owning stock in Meta Platforms, Inc. (parent company of Instagram).

Both individual plaintiffs claim to have experienced financial harm due to the alleged failure to enforce the law.

Defendants:

  • Former President Donald Trump
  • Former Attorney General Pam Bondi

Allegations of Financial Ties and Conflicts of Interest

The lawsuit claims that the investment group involved in the approved deal has close ties to then-President Trump and has, at times, provided him with personal financial benefits. The investment group includes Oracle, Abu Dhabi’s MGX, and affiliates of Susquehanna International Group, LLP and General Atlantic, among other companies.

Specific examples cited in the lawsuit include:

  • Larry Ellison, Oracle co-founder and chairman, previously hosted a $100,000-per-person fundraiser for then-President Trump.
  • Ellison and his son, David Ellison, acquired CBS News. The lawsuit alleges that Larry Ellison assured then-President Trump he would make it a more conservative outlet.
  • David Ellison, with his father's backing, is reportedly attempting to acquire Warner Bros. Discovery, an acquisition that would require approval from the administration.

Statements from Plaintiffs

Brendan Ballou, CEO of the Public Integrity Project, stated that the deal approved by then-President Trump is detrimental to TikTok users and the country. Ballou asserted that the law's original motivation was to prevent Chinese government propaganda from reaching American audiences. He claimed that the current deal, where ByteDance retains algorithm ownership and Oracle controls data, could negatively impact users and free speech by potentially allowing content censorship by both entities.