Lawsuit Targets Trump Over TikTok Deal And Alleged Conflicts Of Interest

A newly formed watchdog group has filed a lawsuit against President Donald Trump and Attorney General Pam Bondi, challenging the administration’s deal that transferred TikTok’s U.S. operations to a group of American investors.

The lawsuit was filed in the U.S. Court of Appeals for the District of Columbia Circuit by the Public Integrity Project, according to NBC News. The group claims the agreement violated a 2024 law requiring Chinese company ByteDance to divest TikTok’s U.S. business to prevent potential Chinese government influence.

A newly formed anti-corruption group has files a lawsuit against President Trump and Attorney General Pam Bondi over the deal that sold TikTok’s U.S. operation to a group of administration-backed investors. https://t.co/cUlEQ3R6Mq

— NBC News (@NBCNews) March 5, 2026

Plaintiffs argue the administration failed to enforce the law after the divestment deadline passed. The complaint also alleges the deal benefited companies with close ties to the president, including Oracle and investment groups linked to administration allies.

Two technology investors from California filed the case, claiming they suffered financial harm because the law was not enforced.

The Justice Department declined to comment, and TikTok’s U.S. operation did not immediately respond to media requests.

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tippinsightsTIPP Staff