TikTok, feds settle children's privacy lawsuit for $400 million
In May, sources said a settlement could pay for Trump's beautification projects.
The Justice Department and TikTok on Friday settled a lawsuit for $400 million over claims the social media company violated children's privacy laws.
In August of 2024, the Justice Department, under the Biden administration, sued the social media company for allegedly violating the Children's Online Privacy Act of 1998. The Justice Department alleged TikTok had stored, collected and processed data from child users without the consent of their parents.
The settlement announced by the Justice Department on Friday is one of the largest recoveries ever obtained in a children's online privacy case.
TikTok did not immediately publicly comment on the settlement.
TikTok will pay $300 million immediately and another $100 million after an order vacating a prior consent decree has been filed, according to Justice Department.
Although the Justice Department did not immediately say what it will do with the money, sources familiar with discussions within the Trump Administration told ABC News in May that the settlement could be used to fund President Donald Trump's Washington, D.C., "beautification" projects.
This includes the president's proposed 250-foot triumphal arch near Arlington National Cemetery, according to the sources.
The funds were expected to be directed to either the Department of Interior, the Department of Commerce, or both, sources familiar with the discussions said in May.
In a statement about the settlement, Associate Attorney General Stanley E. Woodward Jr. said: "The Department's priority is ensuring that children are protected online and that companies entrusted with their personal information meet their legal obligations. This resolution secures a substantial recovery while reinforcing the protections that families expect and deserve."
The DOJ notes that "The claims resolved by the United States in the settlements are allegations only, and there has been no determination of liability."
ABC News' Katherine Faulders, Peter Charalambous, and Alexander Mallin contributed to this report.
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