The Justice Department filed its first-ever federal court action Monday to force a Chinese company to divest from a California tech firm.
The unprecedented lawsuit seeks to enforce a Presidential order requiring Suirui Group to divest Jupiter Systems on national security grounds. The case marks a significant escalation in U.S. efforts to counter foreign ownership of sensitive technology companies. It also demonstrates the government’s willingness to use the courts when diplomatic pressure fails.
The President issued the divestment order on July 8, 2025, finding the acquisition “threatens to impair the national security of the United States.” Suirui Group acquired Jupiter Systems through its Hong Kong subsidiary in 2020.
Jupiter Systems provides video communications hardware and software to commercial and government customers. The company’s government contracts apparently triggered the national security review.
Despite receiving two deadline extensions through February 3, Suirui failed to sell Jupiter Systems within the required 120 days. The Committee on Foreign Investment in the United States (CFIUS) had investigated the transaction before recommending presidential action.
The complaint, filed as United States v. Suirui Group Co., Ltd., et al. in D.C. federal court, invokes section 721 of the Defense Production Act. Trial Attorney Sam Bean from the Justice Department’s Civil Division is handling the case.