Investors Sue Trump, Bondi Over TikTok Deal

Lawsuit alleges TikTok spin-off violated law requiring ByteDance divestment

Published on Mar. 5, 2026

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Two investors, Zhaocheng Anthony Tan and Garrett Reid, have filed a lawsuit against former President Trump and former Florida Attorney General Pam Bondi over the administration's approval of a deal that saw TikTok spun off into a separate American-owned entity to continue operating in the U.S. The lawsuit argues the deal violated a law requiring TikTok's parent company ByteDance to divest from the app or face a U.S. ban.

Why it matters

This lawsuit highlights the ongoing legal and political battles over TikTok's future in the U.S. as the app's Chinese ownership has raised national security concerns. The case could have broader implications for how the government handles issues of foreign-owned technology platforms operating in the country.

The details

The lawsuit, filed by the Public Integrity Project, alleges that under the announced deal, ByteDance would still maintain control over the essential elements of TikTok, subverting the purpose of the law that was intended to prevent Chinese propaganda and censorship. The investors, who hold shares in competing companies Alphabet and Meta, argue they suffered financially from the deal's approval.

  • In late January 2026, TikTok officially spun off its U.S. business.
  • In September 2025, the Trump administration announced it had reached an agreement for a TikTok spin-off.
  • In 2025, Trump pushed back the deadline for ByteDance to divest from TikTok several times as he sought to reach a deal.

The players

Zhaocheng Anthony Tan

A shareholder in Google's parent company Alphabet who is suing over the TikTok deal.

Garrett Reid

A Meta shareholder who is suing over the TikTok deal.

Donald Trump

The former President who approved the TikTok spin-off deal.

Pam Bondi

The former Florida Attorney General named in the lawsuit over the TikTok deal.

ByteDance

The Chinese parent company of TikTok that was required to divest from the app under U.S. law.

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What they’re saying

“For the law to mean something, it must be followed, even—perhaps especially—by the President. Respondents have violated the statute and subverted the will of Congress. Petitioners bring this case to ensure that such violations, and such subversion, do not continue.”

— Zhaocheng Anthony Tan and Garrett Reid, Plaintiffs (thehill.com)

What’s next

The judge in the case will decide on a future date whether to allow the lawsuit to proceed.

The takeaway

This lawsuit highlights the ongoing legal battles over TikTok's future in the U.S. and the challenges the government faces in balancing national security concerns with the interests of technology companies and investors.