A recent court ruling could improve foreign
companies' procedural rights in having deals approved by the
DC Circuit Court ruling on the matter dated July 15 could
represent a small victory for the due process rights afforded
to foreign investors in the national security review of their
inbound acquisitions by the Committee on Foreign Investment in
the United States (Cfius).
President prohibited Chinese-owned Ralls' acquisition of US
wind farms in 2012, on the recommendation of Cfius, few
thought the resulting order was subject to challenge. This is
because section 721 of the Defense Production Act (DPA)
provides that presidential action is not subject to judicial
However, the recent Circuit Court ruling may change this. In
the Ralls ruling from earlier this month, the court held that
due process requires the government to: provide notice of the
Cfius action to the foreign company; disclose any...