President Donald Trump and Attorney General Pam Bondi are being sued by two investors who claim that the approval of a deal allowing TikTok to become a separate American-owned entity was unlawful.

Zhaocheng Anthony Tan, who has stakes in Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG), and Garrett Reid, a shareholder in META (NASDAQ:META), have initiated the lawsuit on Thursday. They argue that the deal allowing TikTok to spin off into a separate American-owned entity violated a law requiring its parent company, ByteDance, to divest from the app or face a U.S. ban.The Public Integrity Project, which filed the lawsuit, contends that the deal would let ByteDance maintain control over all key aspects of TikTok, defeating the intent of the TikTok Law.

Tan and Reid assert that the approval of the deal has resulted in financial harm to them as investors in competing companies, creating a “legal impediment to [their] financial ...