Drone manufacturer DJI filed a lawsuit against the US Department of Defense on October 17 regarding the company’s inclusion in the list of “Chinese military companies”. The decision comes after DJI unsuccessfully tried to contact the agency for more than 16 months. about this reports TechCrunch publication.
DJI said the company is not owned or controlled by the Chinese military, and the Department of Defense has acknowledged that DJI produces consumer and commercial drones, not military ones.
DJI was added to the Department of Defense list in 2022, causing financial and reputational damage to the company, including job loss and employee stigmatization.
The lawsuit alleges that the Defense Department’s report justifying the designation contained a number of flaws, including incorrect legal standards, confusing people with common Chinese names and relying on outdated facts.
DJI denies the company’s status as a “Chinese military company,” claiming that founder and CEO Frank Wang and three early-stage investors own 99% of the company’s voting shares and approximately 87.4% of its shares.
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