Investors File Lawsuit Against DHS To Stop EB-5 Regional Center Decertifications – Work Visas

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A group of investment and capital firms filed a lawsuit on May
24, 2022, against the Department of Homeland Security, arguing that
when U.S. Citizenship and Immigration Services (USCIS) decertified
existing EB-5 regional centers, it violated the Administrative
Procedure Act and misinterpreted the EB-5 Reform and Integrity Act
of 2022, which was signed into law following a lapse in
authorization for the EB-5 Regional Center Program. Plaintiffs say
that by categorically decertifying more than 600 existing EB-5
regional centers and requiring them to recertify, USCIS
“eviscerated” the program and determined that a wholly
new regional center program was created rather than following
congressional intent to reauthorize the program with a few changes
and allow existing regional centers to continue their work.

Alleging that USCIS’s action was “unlawful for a host
of reasons,” plaintiffs said the agency’s action meant
that “all existing regional centers, which already have
billions of dollars in invested capital, ongoing development
projects, and investors awaiting adjudication of their visa
petitions, must effectively pause all revenue-generating operations
(while still maintaining regulatory obligations to existing
investors) indefinitely until USCIS approves their new
applications. At current processing rates, it will take well over a
decade for more than 600 programs to become redesignated.”

Plaintiffs are represented by H. Ronald Klasko and Daniel B.
Lundy, of Klasko Immigration Law Partners LLP, and Paul W. Hughes,
Andrew A. Lyons-Berg, and Alex C. Boota, of McDermott Will &
Emery LLP.

This is the second lawsuit challenging USCIS’s claim that
all regional centers must be redesignated. A preliminary injunction
hearing in Behring Regional Center LLC v. Mayorkas, No.
3-22-cv-02487-VC (N.D. Cal.), will be held June 2.


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