Just like other software companies, TikTok is at the hub of numerous lawsuits. According to a recent report, the company has agreed to a settlement in a consumer privacy lawsuit. This case could expose the company to hundreds of millions of dollars in claims. This lawsuit has nothing to do with the potential ban of TikTok in the U.S. market. Thus, the short video application is still preparing for a potential sale.
According to a filing in the Federal Court of Chicago, Bytedance’s lawyers and consumers “have reached a settlement in principle, subject to specific conditions,” to resolve allegations of infringement of consumer privacy. The lawyers stated that they plan to submit a final settlement proposal within 90 days.
However, there is a discrepancy which may cause the agreement to fail. The lawyers representing the California consumers complained that they were not part of the settlement negotiations. In trying to resolve these 19 class-action lawsuits, the owners of TikTok were suspected by the entire West that the app poses a danger to consumers. ByteDance has been subject to strict scrutiny by US and European regulatory agencies.
TikTok American employees to sue the U.S. government
In other news, an employee of TikTok speaking on behalf of TikTok’s American employees says that they will sue the U.S. government over the ban on TikTok. This is coming after the recent executive order that seeks to ban the popular short video app.
According to Patrick Ryan, a technical program manager at TikTok, “his lawsuit will focus on the constitutional right to due process, arguing it’s not the president’s decision “to permit or to not permit entire businesses on a whim.”
Furthermore, Mr. Ryan claims that about 1500 Americans will probably lose their jobs when Trump’s order becomes active. There is currently a GoFundMe account to help pay for legal representation. The account already has about $15,000 and it needs $30,000 to cover the entire cost.
A top internet rights lawyer, Blackstone Law Group, and Mike Godwin will represent TikTok’s U.S. employees. Later this week, the case will be in a federal court. They are arguing that Donald Trump’s action “represents executive overreach”. They also claim that his actions trample on workers’ constitutional rights, including the right to a job. This case will be filed in the Southern District of New York, Northern California or Washington, D.C. Furthermore, the case will be seeking further clarifications on how the Commerce Department plans to apply the ban on transactions.
According to Ryan, this order will not only kill TikTok in the U.S., it will also give rise to thousands of hungry Americans. What is the provision for these Americans that will hit the street without a job? For Ryan, the president’s order clear on what transactions will be prohibited. He also says that there is no time for a “wait and see approach.”