Nalwade v. United States Department of Homeland Security

CourtDistrict Court, District of Columbia
DecidedMarch 27, 2026
DocketCivil Action No. 2024-3463
StatusPublished

This text of Nalwade v. United States Department of Homeland Security (Nalwade v. United States Department of Homeland Security) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nalwade v. United States Department of Homeland Security, (D.D.C. 2026).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

SHYAM NALWADE,

Plaintiff,

v. No. 24-cv-3463 (DLF) UNITED STATES DEPARTMENT OF HOMELAND SECURITY,

Defendant.

MEMORANDUM OPINION

Shyam Nalwade brings this action against the U.S. Department of Homeland Security

(DHS). He claims that U.S. Citizenship and Immigration Services (USCIS), a component of DHS,

unlawfully revoked his H-1B cap-exempt status after finding that his employer committed fraud

during the H-1B visa application process. Before the Court is DHS’s Motion to Dismiss. Def.’s

Mot., Dkt. 9. For the following reasons, the Court will grant the motion.

I. BACKGROUND

A. Legal Framework

The Immigration and Nationality Act (INA) allows U.S. employers to petition for foreign

workers in certain occupations through the H-1B program. See 8 U.S.C. §§ 1101(a)(15)(H)(i)(b),

1184(c)(1). A statutory cap limits the number of new H-1B visas issued each year. See id.

§ 1184(g). Because the demand for H-1B visas typically exceeds that statutory cap, USCIS

annually “conducts a randomized selection process,” known as a “lottery.” Y&N Bldg. Supply US

v. DHS, No. 24-cv-03593, 2025 WL 2801940, at *1 (D.D.C. Oct. 1, 2025) (citing 8 C.F.R. § 214.2(h)(8)(iii)). Thus, before an employer can file an H-1B petition, it must first register in the

lottery on behalf of each prospective foreign employee. See id.

Employers register for the lottery through USCIS’s website. 8 C.F.R.

§ 214.2(h)(8)(iii)(A)(1). The “registration must be properly submitted in accordance with 8 CFR

103.2(a)(1), paragraph (h)(8)(iii) of this section, and the form instructions.” Id. As relevant to this

case, USCIS’s online registration process required petitioners to attest that

this registration (or these registrations) reflects a legitimate job offer and that I, or the organization on whose behalf this registration (or these registrations) is being submitted, have not worked with, or agreed to work with, another registrant, petitioner, agent, or other individual or entity to submit a registration to unfairly increase chances of selection for the beneficiary or beneficiaries in this submission.

Mem. in Supp. of Def.’s Mot. to Dismiss 2–3, Dkt. 9-1; see also Compl. ¶¶ 69, 88, Dkt. 1; Notice

of Intent to Revoke (NOIR) 3, Dkt. 9-4. 1 The Court will refer to this certification as the “anti-

collusion attestation.” The USCIS registration website further stated that

[i]f USCIS finds that this attestation was not true and correct (for example, that a company worked with another entity to submit multiple registrations for the same beneficiary to unfairly increase chances of selection for that beneficiary), USCIS will find that registration to not be properly submitted. Since the registration was not properly submitted, the prospective petitioner would not be eligible to file a petition based on that registration in accordance with the regulatory language at 8 CFR 214.2(h)(8)(iii)(A)(1). USCIS may deny or revoke a petition based on a registration that contained a false attestation and was therefore not properly submitted.

NOIR 3.

If an employer’s registration is selected in the lottery, the employer (the “petitioner”) files

an H-1B petition on behalf of the alien (the “beneficiary”). If the petition is approved, an H-1B

1 In deciding this motion to dismiss, the Court will look beyond the four corners of the complaint and consider the NOIR and the Revocation of Nonimmigrant Petition, Dkt. 9-5, because they are referenced in the complaint and integral to Nalwade’s claim. See Kaempe v. Myers, 367 F.3d 958, 965 (D.C. Cir. 2004).

2 visa is issued allowing the alien to work in the United States for that employer, and the alien is

counted toward that year’s H-1B visa cap. In addition, the alien, having “already been counted”

once, is not counted toward the annual cap—and thus may avoid the lottery—for future H-1B

petitions filed by any new employers during the following six years. See 8 U.S.C. § 1184(g)(7).

In other words, upon approval of an initial H-1B petition, the alien receives a “cap number” and

becomes “cap-exempt” for six years.

Upon notice to the petitioner, USCIS may deny an H-1B petition, 8 C.F.R.

§ 214.2(h)(10)(ii), or revoke a previously approved petition, id. § 214.2(h)(11)(iii). In cases where

DHS revokes an H-1B petition due to fraud or misrepresentation, it also revokes the beneficiary’s

cap-exempt status pursuant to this statutory provision:

If an alien who was issued a visa or otherwise provided nonimmigrant status and counted against the numerical limitations of paragraph (1) is found to have been issued such visa or otherwise provided such status by fraud or willfully misrepresenting a material fact and such visa or nonimmigrant status is revoked, then one number shall be restored to the total number of aliens who may be issued visas or otherwise provided such status under the numerical limitations of paragraph (1) in the fiscal year in which the petition is revoked, regardless of the fiscal year in which the petition was approved.

8 U.S.C. § 1184(g)(3).

B. Factual and Procedural Background

Nalwade is a citizen of India residing in the United States. Compl. ¶ 1. In 2022, a company

called PRN IT CORP INC (PRN) registered Nalwade in the H-1B visa lottery as a prospective

employee. See id. ¶ 120. After its registration was selected in the lottery, PRN filed an H-1B

petition, and USCIS approved it on August 3, 2022. See id. ¶¶ 120–21. Upon approval of PRN’s

petition and issuance of an H-1B visa, Nalwade was counted against that year’s H-1B cap and

became cap-exempt under § 1184(g)(7). See id. ¶¶ 70, 121, 132, 134.

3 On February 21, 2023, USCIS sent PRN a Notice of Intent to Revoke the petition on the

grounds that PRN “committed fraud or willful misrepresentation by colluding with other

companies to increase [Nalwade’s] odds of selection in the H-1B lottery.” Id. ¶¶ 124–26; see

NOIR 3–4. According to the NOIR, two other companies—closely related to PRN and sharing

the same personnel—also submitted registrations for Nalwade in the 2022 H-1B lottery. See NOIR

4. During its investigation, USCIS determined that PRN had “colluded with [these] other

companies during the registration process to unfairly increase chances of [Nalwade’s] selection”

and had therefore falsely certified to the anti-collusion attestation. Id. at 3–4. The NOIR gave

PRN the opportunity “to submit additional information, evidence or arguments to support the

petition.” Id. at 5. PRN responded to the NOIR on May 5, 2023. Compl. ¶ 128. On June 5, 2023,

Nalwade’s new employer, AXLE IT INC, submitted a petition to transfer his H-1B visa, relying

on his cap-exempt status. See id. ¶ 123.

On September 20, 2023, USCIS revoked PRN’s petition and terminated Nalwade’s cap-

exempt status. Id. ¶¶ 129, 132; see Revocation of Nonimmigrant Petition, Dkt. 9-5. In its final

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