Ralls Corp., the Chinese-owned company that was blocked by President Obama on Friday from building four wind farms in Northern Oregon, has added President Barack Obama as a defendant in a lawsuit alleging that the government exceeded its authority, The Wall Street Journal reported Tuesday.
President Obama cited national security risks in issuing an executive order to kill the deal last Friday. His decision was based on a recommendation made by the Committee on Foreign Investment in the U.S., indicating there was credible evidence to determine that that Ralls Corp. and its owner, SANY Group, could pose a threat, Reuters reported.
Announced on Tuesday, the amended suit alleges that the President "acted in an unlawful and unauthorized manner," reported the The Washington Post.
The paper added, "The firm contends Obama took action against Ralls without detailing any national security threat and without giving the firm an opportunity to respond to any evidence of a threat."
At issue is the location of the site which is near a naval weapons testing facility with restricted air space where the Navy, according to its website, flies low, fast, unmanned drones.
It was the first time a U.S. president had blocked a foreign investment in the country in 22 years.
A Treasury spokeswoman said Tuesday, "We believe the lawsuit has no merit, and we intend to defend the case vigorously," The Wall Street Journal reported.
The Sept. 28 order requires Ralls to remove all property and installation within two weeks and divest all of its interests in the wind farms within 90 days.
Bloomberg Businessweek reported yesterday that "an affiliate of SANY" could lose $20 million because of the order, including design and construction costs and excluding legal fees.
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