TikTok Facing Lawsuit Over Alleged Retaliatory Termination

The Employment Law Attorneys of MLG are bringing a lawsuit against TikTok, ByteDance, and related entities on behalf of a Fraud Strategy Expert employee at TikTok, who was allegedly retaliated against and eventually wrongfully terminated for uncovering and reporting alleged fraudulent activities and serious security violations within the company. The Fraud Strategy Expert employee, hired in May 2023, was tasked with identifying and mitigating fraud on TikTok’s platform. He alleges in the lawsuit that within his first six months at the company, he had discovered multiple instances of fraudulent activity affecting the platform’s users, including one significant attack involved as much as $1,000,000 in fraudulent transactions. Upon reporting this activity, however, he alleges he was instructed only to pursue cases which posed a direct financial threat to TikTok itself. 

The lawsuit further alleges that in retaliation for these reports, TikTok and its parent company, ByteDance, began marginalizing the employee, diminishing his responsibilities, and subjecting him to unwarranted scrutiny. In July 2024, the Fraud Strategy Expert employee was placed on a Performance Improvement Plan (PIP) with the ultimatum of accepting the plan or facing termination. Shortly after, the Fraud Strategy Expert employee was terminated, marking the culmination of TikTok’s retaliatory actions against him for reporting fraudulent activity, security lapses, and violations of both internal policies and federal law.

To learn more about this case or if you have faced a similar situation in the workplace, contact our employment law team today by calling (909) 345-8110 for a free case evaluation.

Exposing Fraud Linked to Terrorist Activity

The lawsuit also alleges that following the October 2023 attacks on Israel, the Fraud Strategy Expert employee identified several suspicious accounts tied to fraudulent activity on TikTok, including accounts believed to be associated with Hamas, which were potentially raising funds for terrorist activities. Despite the serious implications of this discovery, TikTok’s response was limited. The Fraud Strategy Expert employee continued to report accounts linked to this network through October and November, but his efforts were met with indifference and minimal action by TikTok’s Anti-Money Laundering (AML) team.

By bringing these fraudulent activities to light, the Fraud Strategy Expert employee exposed serious vulnerabilities in TikTok’s fraud detection and anti-money laundering processes. However, instead of being supported for his efforts to safeguard the platform, he was marginalized, ignored, and retaliated against for attempting to ensure TikTok acted responsibly in the face of potentially criminal activity.

Frequently Asked Questions

What is the basis of the lawsuit against TikTok?

The lawsuit alleges that TikTok retaliated against the Plaintiff, a Fraud Strategy Expert, after he reported several significant fraud and security issues within the platform. Despite uncovering scams, fraudulent transactions, and accounts tied to terrorist activities, the Plaintiff’s concerns were ignored, and he was eventually terminated in violation of California labor laws.

The Plaintiff uncovered several types of fraud, including a romance scam, fraudulent tipping transactions resulting in over $1,000,000 in losses, and accounts linked to terrorist organizations using TikTok to raise funds. These reports were allegedly ignored by TikTok’s management.

Despite the Fraud Strategy Expert employee uncovering Hamas-affiliated accounts that were using TikTok for fundraising, the company allegedly failed to take significant action. The Fraud Strategy Expert employee’s efforts to escalate the matter were discouraged, and TikTok did not conduct a thorough internal investigation.

If you believe that you have experienced a similar situation, consult with an Employment Law Attorney from MLG immediately. Our Employment Law team has fought against Fortune 500 companies and won. We have more than 30 years of experience and over $1 billion recovered for our clients, we have become nationally recognized for protecting employee rights across the country.

How to Start Your Potential Case

The Employment Law Attorneys of MLG are trained to help fight against any form of workplace retaliation and specialize in protecting employees’ rights. Our firm has extensive experience handling a variety of employment discrimination cases, including race, gender, age, disability, retaliation, and whistleblower cases. Here are four steps to help you initiate contact:

  1. Step 1: Research and Gather Information – Before reaching out, gather all relevant information about your case. This includes details about the incident and information about the parties involved. Take note of the date, time, and location of the incident. 
  2. Step 2: Call or Complete the Form for Initial Evaluation – Use the provided phone number or online form to contact our team. You may find it helpful to prepare a summary of your case before making the call or completing the form. This will ensure you provide essential details efficiently.
  3. Step 3: Schedule a Free Evaluation – Request a free evaluation to discuss your case in detail. We offer free initial evaluations to assess the viability of your case. During this meeting, you can share the specifics of your situation, ask questions, and get a better understanding of how our team can assist you.
  4. Step 4: Prepare for the Evaluation– Before the scheduled evaluation, organize all relevant documents and be prepared to articulate the details of your case clearly. This will help the attorney assess the merits of your case more effectively. During the evaluation, feel free to ask any questions you may have about the legal process, potential outcomes, and our approach to employment lawsuits.

A Legal Team You Can Rely on

At MLG, we have built a reputation as one of the top law firms in the Inland Empire and have recovered over $1 billion for our clients. With a proven track record of success in high-profile cases, including those involving employment law violations, we have the experience and expertise to stand up to even the largest corporations. We are committed to providing you with the legal expertise required so that you receive the compensation you deserve. If you believe your rights have been violated, or if you need a legal team with a proven track record of success, we encourage you to contact us today for a confidential case evaluation. Let us fight for you and achieve the results you deserve.

Call our office today at (909) 345-8110 and take the first step toward justice.

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Counsel Richard McCune is licensed to practice only in the state of California. The law firm of McCune Law Group has attorneys licensed to practice law in AZ, CA, GA, MO, NY, and PA. McCune Law Group is a national firm that brings lawsuits in a majority of the states. In states where one of its attorneys is not barred, it does so by filing the complaint along with local counsel barred in that state.   

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