TikTok is facing an overwhelming number of lawsuits—around 1,500—that pose substantial financial risks due to allegations of harming youth mental health and mishandling private data. Pending litigation would transfer to any US buyer if ByteDance, TikTok's Chinese parent company, sells its operations, further complicating any acquisition. Potential bidders are considering negotiations related to these liabilities as they await a deadline for a potential sale orchestrated with the help of U.S. officials. This complex legal landscape challenges TikTok's future viability in the U.S. market as scrutiny increases.
Collectively, an estimated 1,500 pending lawsuits carry billions of dollars in potential exposure over allegations that the platform is fueling a youth mental-health crisis and preying on users' sensitive private information for profit.
Unresolved lawsuits typically carry over in a corporate takeover to the acquiring company, and the complaints against TikTok would also transfer if its China-based parent, ByteDance Ltd., sells operations for 170 million American subscribers to a US buyer.
Collection
[
|
...
]