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Denver CFIUS Attorneys Expertly Dealing With National Security Implications

At Sequoia Legal, we are ready to help you navigate the CFIUS process with lawyers who understand it inside and out.

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CFIUS-desc

The Committee on Foreign Investment in the United States, (CFIUS ) is an interagency committee that is chaired by the Secretary of the Treasury. CFIUS is tasked with regulating foreign investments involving U.S. businesses and the interaction of those investments with national security concerns. Therefore, any time you are involved (whether from the company side or investor side) in an foreign investment in a US business, CFIUS may have jurisdiction to review and investigate the transaction. Therefore, in some cases, it is best to simply assume CFIUS jurisdiction and to manage the transaction accordingly.

The international business transactions lawyers at Sequoia Legal can advise you concerning initial risk assessment, filing options, formal and practical time constraints, prevailing national security and foreign policy concerns, cybersecurity, data and infrastructure protection, regulatory compliance, mitigation and other critical matters.

Understanding the Importance of CFIUS

The Committee on Foreign Investment in the United States (CFIUS) is a quasi-governmental agency with representatives from the Department of Defense, the State Department, the Commerce Department, and the Department of Homeland Security.

President Ford created it in 1975 to prevent sanctioned nations from obtaining US technology or intellectual property, either directly or indirectly, through investments in US companies.

CFIUS reviews transactions involving investment in or acquisition of US companies by foreign individuals or entities. It has authority to block any transaction that deems a national security threat or imposes conditions on any such transactions.

CFIUS has blocked foreign investment in US companies on many occasions. It has grown dramatically more active over the past decade. In 2018, for example, it conducted 158 investigations of foreign investments into US companies.

How We Can Help You Navigate Complex CFIUS Matters

The Exon-Florio Amendment to the Defense Production Act allows the President to block or modify transactions that might result in foreign control of a US company, even through dominant minority ownership. On 2018, the U.S. Treasury Department issued initial regulations to implement the Foreign Investment Risk Review Modernization Act ( FIRRMA), which expands the jurisdiction of CFIUS. Prior to FIRRMA, CFIUS review of transactions was typically on a voluntary basis, where the parties to the transaction voluntarily submitted to CFIUS review and approval. After FIRRMA, certain transactions are subject to mandatory CFIUS review and failure to obtain CFIUS review for such transactions can result in significant penalties.

How-We-Can-Help
How-We-Can-Help

On October 15, 2020, The U.S Treasury Department issued a final rule (the "October Rule") that significantly modified the requirements surrounding CFIUS mandatory filings for transactions involving foreign investments in “TID US businesses” dealing in “critical technologies”.  “TID US businesses” are sensitive US businesses dealing in critical technologies, critical infrastructure and sensitive personal data.   CFIUS mandatory disclosures now rely entirely on whether a U.S. export authorization would be required to export the "critical technology" to certain foreign persons involved in the transaction, regardless of whether an actual export of the technology has or is intended to occur. Thus, the October Rule directly ties the mandatory filing requirement for critical technology transactions to established US export control regulations, including the International Traffic in Arms Regulations (ITAR), the Export Administration Regulations (EAR) and Department of Energy and Nuclear Regulatory Commission authorizations related to atomic energy and nuclear equipment and material.

CFIUS regulations are complex and require a comprehensive understanding of not only the CFIUS regulations themselves, but also the related exports control regulations mentioned above, including the EAR and ITAR.  Sequoia Legal can help you determine whether reporting is voluntary or mandatory under a given set of circumstances, We can also help you determine whether it would be in your best interests to submit a voluntary declaration of a merger, acquisition, or other foreign investment that might result in de facto foreign control of a US company.

If you file a declaration, whether mandatory or voluntary, be aware that every sentence of such a declaration has consequences. We can help you prepare a declaration in a manner that will reduce your legal risks and provide maximum protection of your interests.

How-We-Can-Help

Our Attorneys Are Here To Hold Your Hand And Support You

Schedule an online appointment and let our firm help you with resolving your case.

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Our Legal Counsel Covers All Phases
of Your International Transaction

Our CFIUS attorneys can help you with the following matters, among others:

  • Performing due diligence prior to the execution of a transaction to determine CFIUS risks.
  • Structuring the transaction to minimize any legal or regulatory risks.
  • Drafting and filing CFIUS declarations.
  • Appearances before CFIUS to explain a transaction and answer questions.
  • Obtaining CFIUS clearance for a transaction, after negotiating mitigation measures that are acceptable or, preferably, non-existent.
  • Advising you on the CFIUS risks that you face by proceeding with a given transaction.
  • Drafting post-transaction compliance plans.
  • Using periodic reports on compliance and advising you on how proposed company actions will affect compliance.
  • Drafting any documentation that your company will need to provide after the transaction is complete.

Our goal is to offer you comprehensive assistance through every stage of your transaction and its aftermath.

We Represent Various Businesses Across The World

Global boundaries are rapidly dissolving, and at Sequoia Legal, we represent major transnational industries and clients from all over the world.

Our clients are based in China, Russia, the United Arab Emirates, Qatar, Saudi Arabia, and Germany, as well as many other nations. We also represent US companies and persons receiving investments from foreign investors.

We-Represent
Industries We Represent

Industries We Represent

Our clients frequently rely on our guidance on major investments involving cutting-edge technology and complex compliance issues. Our clients have trusted us with the most complex and high-stakes transactions involving CFIUS reviews in the following industries:

  • Aerospace and defense
  • Autonomous vehicles and systems
  • Robotics
  • Semiconductors
  • Software
  • Information and communications technologies
  • Telecommunications services
  • Travel and leisure
  • Energy
  • Oil and gas
Industries We Represent
Industries We Represent
  • Natural resources
  • Life science and biotechnology
  • Financial services and insurance
  • Consumer goods
  • Critical infrastructure
  • Vehicle manufacturing
  • Manufacturing, chemicals, and heavy industry
  • Transportation systems
  • Technology
  • Oil and gasHealthcare and pharma

Why Do Our Clients
Choose Sequoia Legal?

Our clients choose us for three major reasons.

Extensive Experience

Extensive Experience

Our attorneys enjoy the benefits of long years of experience in the CFIUS review process concerning foreign direct investments that might pose a security risk to the United States. We understand their priorities, their methods, and above all, their thinking.

Skilled Legal Representation

Skilled Legal Representation

National security and regulatory compliance are two incredibly fast-moving areas of law. Our CFIUS lawyers invest the time that it takes to remain current in a rapidly evolving legal environment. We enjoy a successful track record of defending our clients against overbearing government interference.

In-Depth Knowledge of National 
Security Regulations

In-Depth Knowledge of National Security Regulations

The Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA) dramatically changed the game when it comes to CFIUS reviews. Our attorneys have kept up with these and other changes, and we are able to anticipate further changes down the road.

Meet Our Attorneys

Frequently Asked
Questions (FAQs)

What Is FIRRMA?

FIRRMA is the Foreign Investment Risk Review Modernization Act. It is a federal law that drastically expanded the jurisdiction of CFIUS and, to some extent, modified CFIUS processes.

What changes did FIRRMA make to the CFIUS process?

FIRRMA created pilot programs to implement its provisions, to the extent that these provisions were not yet effective at the time the law was enacted. It also implemented a short-form filing and review process, and it expanded mandatory filing requirements to include certain transactions involving foreign governments and critical technology.

What are TID businesses now subject to CFIUS authority?

TID businesses include critical technology, critical infrastructure, and sensitive personal data. All of these are subject to CFIUS authority (and, in many cases, intense scrutiny).

What’s the scope of the new CFIUS Pilot Program?

The new CFIUS Pilot Program expanded the scope of transactions subject to CFIUS review to include even non-controlling real estate transactions and investments into US companies by foreign entities. It also made certain declarations mandatory that were previously voluntary.

What Our Clients Say

5

Marcus F.

Sequoia Legal found subtle legal loopholes in some of our confidentiality agreements that could have spelled disaster for our small business. Fortunately, with the help of Sequoia Legal, we were able to get these leaks plugged before they did any serious damage to our company.

5

Cyndi S.

Our company operates in a highly regulated industry. Sequoia Legal has been our go-to law firm for years now. I am happy to say that we have never suffered a serious regulatory noncompliance problem, and Sequoia Legal has quickly resolved the few minor problems that did arise.

5

Jake D.

Our company’s trade secret protection system was a ticking time bomb waiting to explode. Sequoia helped us revamp the system so that it complies with both state and federal law. I cannot recommend their services highly enough.

5

Teresa M.

We ran into a hit on the SDN list. It turned out to be a case of mistaken identity, and Sequoia Legal helped us resolve the issue in a quick and cost-efficient manner. Very professional and knowledgeable.

5

Mike C.

A couple of years ago, our company had no compliance program to speak of, and we were barely aware of the existence of OFAC regulations. Sequoia Legal helped us get our house in order, and we have had no problems since then.

5

Jacqueline K.

We contacted Sequoia Law after an internal audit revealed that our company had inadvertently committed two substantial OFAC violations over the past two years. We chose the path of voluntary disclosure to OFAC and received lenient penalties. Many thanks to Sequoia for their adroit handling of the matter.

5

Wilson B.

We are an out-of-state company that hired Sequoia Legal to crack down on some Colorado companies that were blatantly infringing our trademarks and software copyrights. Sequoia Legal shut them down in a matter of weeks and secured generous compensation for our damages.`Sequoia Legal epitomizes professionalism.

5

Walter R.

Our previous attorney had drafted us NDAs that were so full of holes that it left unscrupulous former employees almost complete freedom to deal with our trade secrets as they wished. Sequoia Legal helped us plug those loopholes and prevent further leakage of valuable trade secrets. I can’t recommend them highly enough.

5

Grace F.

We hired Sequoia Legal to help us organize and protect our intellectual property needs. They identified problems we didn’t even know we had, and they helped us head off serious oversights that might have bankrupted our company if we hadn’t caught them in time.

5

Gary D.

Sequoia Legal has been helping us with regulatory compliance matters for years now. So far, we have not had a single complaint lodged against us by any patient or entity, and no enforcement actions have been implemented or threatened. I can’t praise them enough.

Looking For Professional CFIUS Lawyers? Contact Us Now

CFIUS reviews are among the most daunting legal matters any business will ever face, rivaling even SEC regulations and antitrust law in their nuanced complexity. Fear not. The CFIUS lawyers At Sequoia Legal stand ready to help you make it through the CFIUS regulatory maze. Call (303) 476-2851 or contact us online to schedule a consultation.

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7355 E. Orchard Rd., Suite 375 Greenwood Village, CO 80111

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