DOJ Files Lawsuit to Enforce Trump's Divestiture Order on Suirui Group

The U.S. Department of Justice (DOJ) has initiated a legal challenge aiming to enforce a presidential order demanding that Chinese firm Suirui Group Co., Ltd., along with its affiliate Suirui International Co., Ltd., relinquish their control over the American company Jupiter Systems, LLC. This lawsuit, unprecedented in its nature, seeks to uphold President Trump's July 2025 directive following the findings of the Committee on Foreign Investment in the United States (CFIUS).

CFIUS plays a crucial role in evaluating foreign investments for potential national security risks. Under federal law, transactions perceived as threats can be mitigated or even prohibited by the President if credible evidence suggests a risk to national security. This legal framework enables CFIUS to scrutinize and, if necessary, refer concerning transactions to the President for further action.

While many CFIUS examinations occur after parties voluntarily notify the committee, CFIUS has the authority to independently review transactions upon discovering them. This often motivates parties to submit their transactions for review preemptively to avoid the complexities and costs of retracting a completed transaction.

Suirui, a private Chinese entity focused on video and cloud communications, acquired Jupiter Systems in February 2020 without notifying CFIUS. Jupiter, known for its video communication solutions catered to both commercial and governmental clients, caught CFIUS's attention in March 2024, prompting a request for transaction details, which were provided in October 2024.

CFIUS identified significant national security risks linked to the potential vulnerability of Jupiter's technology, already in use within U.S. military and infrastructure. Although CFIUS attempted to negotiate risk mitigation strategies, Suirui and Jupiter were non-compliant, refusing suggested terms and failing to cooperate fully. Consequently, CFIUS escalated the matter to the President, who then ordered Suirui's divestment from Jupiter by July 2025, empowering the Attorney General to enforce this order.

After failing to divest by the deadline, despite receiving extensions, Suirui's ongoing control over Jupiter's assets as of February 2026 led the DOJ to file this lawsuit. The DOJ seeks not only declaratory and injunctive relief but also a court directive for Suirui to divest Jupiter's equity to a third party until the divestiture is complete.

This case marks the DOJ's first attempt to enforce a presidential divestiture order post-transaction closure, exemplifying the robust authority of both CFIUS and the President in safeguarding national security against foreign interests. It underlines the necessity for foreign investors to carefully evaluate the implications of notifying CFIUS pre-transaction and highlights continued efforts to curb Chinese acquisition of sensitive U.S. technologies.

For further inquiries regarding CFIUS processes or transaction notifications, contact the professionals at Arnold & Porter's Export Control & Sanctions or White Collar Defense & Investigations practice groups.

© Arnold & Porter Kaye Scholer LLP 2026 All Rights Reserved. This Blog post is intended to be a general summary of the law and does not constitute legal advice. You should consult with counsel to determine applicable legal requirements in a specific fact situation.