TikTok owner ByteDance ready to sign a deal in privacy lawsuit in Chicago Federal Court to avoid millions in damages
TikTok’s Chinese owner, ByteDance is reportedly ready to settle consumer privacy litigation. The attorneys appearing for ByteDance said that they plan to file a final settlement proposal within 90 days. The lawsuit currently being heard in a Chicago federal court could have exposed TikTok and ByteDance in hundreds of millions of dollars in damages.
Lawyers for ByteDance Ltd. and consumers have “reached a settlement in principle, subject to certain conditions,” to resolve claims that the app unlawfully records facial-scan images of children and sends confidential information about adult users to China, according to a filing in Chicago federal court. The deal could be scuttled because attorneys representing consumers in California are complaining that they were left out of the settlement talks.
The short video uploading app currently faces 19 class-action lawsuits in America and this lawsuit is one of them. In one of the other lawsuits, Families have accused TikTok of collecting children’s information without permission are asking a court to preserve data threatened by an executive order directing the app’s Chinese owner to sell U.S. assets. President Donald Trump’s Aug. 14 order sets a deadline for ByteDance Ltd. and Chinese shareholders to divest and destroy data on U.S. users of the popular music video app. A preservation order is needed because such data is “crucial evidence” for the class action claims, according to a Monday filing from the families’ lawyers.
As TikTok prepares itself for its potential sale to Microsoft the threat of being shut down in the U.S. continues for the Chinese origin company.