Google TikTok Ban Lawsuit: Shareholder Claims Impact
Shareholder Tan is suing Google‘s parent company, Alphabet, over its continued distribution of TikTok, despite a federal ban. The shareholder lawsuit focuses on Google’s potential liability and seeks internal documents, challenging the company’s legal rationale. Tan questions Google’s reliance on past executive orders and a letter advising against liability, arguing that a change in political climate could expose the tech giant to significant financial risks. The lawsuit demands access to board meeting minutes, possibly revealing how the board evaluated risks. This news is brought to you by News Directory 3. The court will now consider access to Alphabet’s board meeting minutes. Discover what’s next in this high-stakes legal battle.
google Faces shareholder Lawsuit Over TikTok Ban Enforcement
Updated June 10, 2025
alphabet, Google’s parent company, is facing a shareholder lawsuit regarding the enforcement of the TikTok ban. Shareholder tan initiated the legal action, seeking internal documents related to the company’s decision to continue distributing the TikTok app despite a federal law prohibiting it.
tan’s central argument revolves around what he sees as Google’s disregard for the law. “There is a federal law that says the TikTok app should not be on yoru store, and I can see TikTok is on the app store,” Tan said. “Congress passed the law, and the Supreme Court upheld it. It’s not debatable.” He aims to understand the legal justification for Google’s actions and the potential liability shareholders face.
The lawsuit, filed Tuesday, requests access to minutes and materials from Alphabet’s board meetings concerning the TikTok ban. Tan believes these records will reveal whether the board discussed the risks associated with distributing TikTok and how they assessed potential legal repercussions. He made the request under delaware law, which allows shareholders to inspect company records when investigating suspected mismanagement.
Tan’s legal actions extend beyond this case.In February, he filed a public records request with the Justice Department for letters reportedly sent by then-Attorney General Pam bondi to Google and Apple, advising them they wouldn’t be liable for distributing TikTok. After the Justice Department claimed it had no such records, Tan sued. The New York Times has filed a similar suit.
Companies violating the TikTok ban could face penalties of up to $5,000 per user.Tan’s lawsuit contends Google shouldn’t solely rely on a past executive order and Bondi’s letter to shield itself from legal risks. He argues a future president, or even a change of heart from former President Trump, could expose the tech giant to liability.
Google’s attorney, Gavril, argued that the potential harm was hypothetical. “A lot of planets would have to align for that hypothetical harm to become reality,” Gavril said, suggesting Tan should wait for actual harm before investigating.
What’s next
The court will now consider Tan’s request to access Alphabet’s board meeting minutes, perhaps shedding light on the company’s risk assessment regarding the TikTok ban and its distribution strategy.