In a surprising legal maneuver, DJI, the world’s largest drone manufacturer based in China, has replaced its legal representation in its ongoing lawsuit against the U.S. Department of Defense. The company has parted ways with former U.S. Attorney General Loretta Lynch and her legal team at Paul, Weiss, Rifkind, Wharton & Garrison, opting for a new legal team from the prestigious firm Quinn Emanuel Urquhart & Sullivan.
This shift comes just days after Paul Weiss officially withdrew from representing DJI in its high-stakes litigation. The lawsuit, filed in October 2023, challenges the Pentagon’s decision to add DJI to a list of companies allegedly linked to China’s military, a designation the company claims has caused significant financial harm.
In a statement issued by DJI, the company clarified that while Paul Weiss will no longer handle the Pentagon case, they will continue to represent DJI in other ongoing legal matters. Neither the company’s statement nor court filings provided an explanation for the decision to part ways with Lynch and her team.
The withdrawal of Lynch’s firm marks a significant change in the course of the legal battle, which is being closely watched in both U.S. legal circles and international business communities. The case centers on DJI’s accusation that its inclusion on the U.S. Defense Department’s “Chinese military companies” list is unjustified and damaging. DJI is seeking a court order to have its name removed from the list.
DJI’s new legal team is led by Derek Shaffer, co-chair of Quinn Emanuel’s government and regulatory litigation group. Quinn Emanuel is renowned for its expertise in complex litigation, with high-profile clients such as billionaire entrepreneur Elon Musk. William Burck, a co-managing partner at Quinn Emanuel and a well-known Republican insider, is also part of the team.
The case, SZ DJI Technology Co Ltd v. U.S. Department of Defense, is being heard in the U.S. District Court for the District of Columbia. DJI claims that the Pentagon’s actions, initiated in 2022, have unfairly damaged its business operations, particularly in the United States, where it sells more than half of all commercial drones. Despite the Pentagon’s claims, DJI denies any ownership or control by the Chinese military.
Lynch, who served as U.S. Attorney General during President Barack Obama’s second term, was a prominent figure on DJI’s legal team alongside Kannon Shanmugam and Roberto Gonzalez, both well-established legal figures in Washington. Shanmugam heads Paul Weiss’s D.C. office, and Gonzalez has held senior roles in the Obama administration and U.S. Treasury.
As the case continues to unfold, attention has turned to the broader implications of this legal battle, particularly concerning the Foreign Agents Registration Act (FARA). Some experts argue that the law, which governs foreign lobbying and commercial activities in the U.S., is outdated and has gaps that might have affected the transparency of legal representation in this case.
Case Details:
- Case Name: SZ DJI Technology Co Ltd v. U.S. Department of Defense
- Court: U.S. District Court for the District of Columbia
- Case Number: 1:24-cv-02970-PLF
DJI’s legal team did not respond to inquiries at the time of publication. As the lawsuit progresses, the company and its new attorneys at Quinn Emanuel will continue to challenge the Pentagon’s designation, with the outcome potentially influencing broader corporate and legal battles between the U.S. and Chinese tech companies.
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