Sen. Pete Ricketts, R-Neb., joins ‘Varney & Co.’ to discuss TikTok’s data security concerns, mounting pressure on Iran, and the fight to keep the government open.
President Donald Trump and Attorney General Pam Bondi were sued Thursday over their handling of the TikTok deal that closed in January, according to a petition filed by two shareholders of rival tech companies.
The plaintiffs argued that Trump approved a joint venture that failed to completely sever the app’s operating ties with China, allowed several unlawful extensions, and that Bondi failed to investigate the alleged breaches as required by the Protecting Americans from Foreign Adversary Controlled Applications (PAFACA) Act, which ordered TikTok to divest from its Chinese parent company ByteDance in early 2025.
The petition was filed by Alphabet shareholder Zhaocheng Anthony Tan and Meta Platforms shareholder Garrett Reid, who said the TikTok deal also led to declines in Meta and Google shares.
“For the law to mean anything, it must be followed, even — perhaps especially — by the president,” said the lawsuit, filed by the Public Integrity Project. “Respondents have violated the statute and subverted the will of Congress. Petitioners bring this case to ensure that such violations and subversion do not continue.”
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Trump in January backed the launch of The Joint Venture LLC, a seven-member American majority board that allowed TikTok to remain active in the US. (Getty Images)
Under the current agreement, TikTok was spun off into a separate US-owned entity to remain operational in the country, complying with an executive order that was issued by Trump on September 25 last year. The majority-U.S.-owned joint venture gives U.S. entities an 80.1% stake, while parent company ByteDance retains 19.9%.
“In short, under the announced deal, ByteDance would still control all essential elements of TikTok,” the lawsuit said. “Such a deal would undermine the purpose of the TikTok law, as ByteDance could continue to push Chinese propaganda and censor the content it doesn’t like, the very harm the law was designed to prevent.”
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Attorney General Pam Bondi will hold a press 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 US entity TikTok does not actually own the app’s algorithm, but is collaborating with ByteDance, violating the legal ban on algorithmic collaboration. While ByteDance retains ownership and license of the algorithm, TikTok US will only “retrain, test and update” it using US user data.
The US entity’s budget, regulatory compliance and commercial operations will also be overseen by ByteDance CEO Shou Chew, who will sit on TikTok US’s board of directors, creating a new operating relationship that is prohibited, according to the lawsuit.
The petition further alleges that Trump has violated PAFACA, which allows the president to grant only a one-time extension of no more than 90 days, and only with the necessary certifications to Congress. Trump reportedly approved five separate extensions — of 75, 75, 90, 90 and 120 days — that far exceed the legal limit.
The petition alleges that Trump acted unlawfully directed Bondi not to investigate or enforce violations of PAFACA that directly violate the law.
Shou Zi Chew (C), the CEO of TikTok, arrives to attend the inauguration of Donald Trump as the next US president at the rotunda of the US Capitol in Washington, DC, on January 20, 2025. (Shawn Thew/POOL/AFP via Getty Images)
The lawsuit alleges that Trump’s actions financially harmed investors in TikTok’s competitors. The plaintiffs noted that when the deal closed in January, Alphabet’s stock immediately fell from $330.84 to $328.43.
Similarly, Meta shares fell from $760.66 to $748.91 during the initial framework announcement in September 2025, when it became clear that the law might not be enforced.
