Y & N Building Supply US LLC v. United States Department of Homeland Security

CourtDistrict Court, District of Columbia
DecidedOctober 1, 2025
DocketCivil Action No. 2024-3593
StatusPublished

This text of Y & N Building Supply US LLC v. United States Department of Homeland Security (Y & N Building Supply US LLC 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.

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Y & N Building Supply US LLC v. United States Department of Homeland Security, (D.D.C. 2025).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

Y & N BUILDING SUPPLY US LLC, et al, : : Plaintiffs, : Civil Action No.: 24-03593 (RC) : v. : Re Document No.: 12 : UNITED STATES DEPARTMENT OF : HOMELAND SECURITY, et al., : : Defendants. :

MEMORANDUM OPINION

DENYING PLAINTIFFS’ SECOND MOTION FOR PRELIMINARY INJUNCTION

I. INTRODUCTION

This case concerns an H-1B petition filed by Plaintiff Y & N Building Supply US LLC

(“Y&N”) on behalf of a beneficiary, Plaintiff Lu Sun (“Ms. Sun”) (collectively, “Plaintiffs”).

Defendant United States Citizen and Immigration Services (“USCIS”) initially approved Y&N’s

petition, but later revoked its approval due to alleged fraud or misrepresentation by Y&N in the

H-1B application process. Plaintiffs filed suit against USCIS and the United States Department

of Homeland Security (“DHS”) (collectively, “Defendants”), contending that the revocation of

Y&N’s H-1B petition approval violated the Administrative Procedure Act (“APA”). See 5

U.S.C. § 706. Presently before the Court is Plaintiffs’ second motion for a preliminary injunction

that would stay the effectiveness of the USCIS’s revocation decision and reinstate Ms. Sun to H-

1B status. Pls.’ Mot. Prelim. Inj. at 33 (“Mot.”), ECF No. 12; Pls.’ Proposed Order, ECF No. 12-

2. As explained below, the Court denies this motion because Plaintiffs have not shown that they

are likely to succeed on the merits of their claims. II. BACKGROUND

A. Legal Framework

The Immigration and Nationality Act (“INA”) authorizes U.S. employers to petition for

foreign workers in specialty occupations through the H-1B visa program. See 8 U.S.C.

§§ 1101(a)(15)(H)(i)(b), 1184(c)(1). Each fiscal year, a statutory cap limits the number of new

H-1B visas to 65,000, with an additional 20,000 for individuals holding U.S. master’s or higher

degrees. See id. § 1184(g). Due to high demand, USCIS conducts a randomized selection process

(“lottery”) to allocate cap numbers. See 8 C.F.R. § 214.2(h)(8)(iii). A foreign worker is not

subject to the numerical cap if they have already been counted against the cap within six years

prior to the approval of a subsequent H-1B petition. 8 U.S.C. § 1184(g)(7).

Employers seeking to file an H-1B petition (Form I-129) must first submit an online

registration on behalf of the foreign worker (“beneficiary”) for the H-1B lottery through the

USCIS’s website. 8 C.F.R. § 214.2(h)(8)(iii)(A)(1). This registration process requires the

employer to attest that the registration reflects a legitimate job offer, that a petition will be filed if

selected, and that the registrant has not colluded with others to unfairly increase a beneficiary’s

selection chances. USCIS, H-1B Electronic Registration Process (last updated July 18, 2025),

https://www.uscis.gov/working-in-the-united-states/temporary-workers/h-1b-specialty-

occupations/h-1b-electronic-registration-process. For an employer to be eligible to file an H-1B

petition, its registration “must be properly submitted in accordance with [8 C.F.R.

§§ 103.2(a)(1), 214.2(h)(8)(iii)], and the form instructions.” 8 C.F.R. § 214.2(h)(8)(iii)(A)(1).

If an employer’s registration is selected, the employer can submit an H-1B petition,

which USCIS may approve or deny. Id. However, petitions based on false or misleading

information may be denied or revoked. See 8 U.S.C. § 1184(g); 8 C.F.R. § 214.2(h)(11)(iii). In

2 cases of fraud or willful misrepresentation, any cap number previously allocated to a beneficiary

must be recaptured. See 8 U.S.C. § 1184(g)(3).

B. Factual and Procedural Background

On March 13, 2023, Y&N submitted an H-1B registration on behalf of Ms. Sun. Mot.

at 5; Ex. A at 12, ECF No. 3-2. A different company, SB HVAC Services Corp (“SB”), also

submitted an H-1B registration for Ms. Sun. Mot. at 5. A paralegal, Echo Wang (“Ms. Wang”),

filed both Y&N and SB’s registrations with USCIS. Id. In submitting the H-1B registration,

Y&N attested under penalty of perjury that it had “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 [its] submission.”

Ex. B at 2, ECF No. 16-2. On March 26, 2023, USCIS selected from the lottery Y&N’s

registration for Ms. Sun. Mot. at 5.

On May 26, 2023, Y&N submitted an H-1B petition for Ms. Sun, seeking to classify her

as a temporary worker in a specialty occupation. Ex. B at 1. USCIS approved the petition on

June 29, 2023. Id. On September 19, 2024, however, USCIS issued a Notice of Intent to Revoke

(“First Revocation Notice”), citing evidence indicating that Y&N collaborated with another

entity, SB, to submit multiple registrations to unfairly increase Ms. Sun’s chances of lottery

selection. Ex. A at 78. Specifically, the First Revocation Notice identified overlapping IP

addresses; shared use of the same attorney, email address, and mailing address; as well as

support letters from both companies that were nearly identical, among other things. Id. at 81–82.

On October 22, 2024, Y&N responded to the First Revocation Notice, denying the

allegations that Y&N had colluded with SB to unfairly increase Ms. Sun’s selection chances. Ex.

B at 1. In support, Y&N submitted a counsel brief; declarations by Ms. Sun, SB’s Manager

3 Houqiang Deng, and attorney Anze Zhang; Ms. Sun’s 2023 W-2 Form; and SB’s job offer to Ms.

Sun. Id.

USCIS revoked approval of Y&N’s petition on November 19, 2024 (“First Revocation”).

Id. On December 23, 2024, Plaintiffs filed a complaint against Defendants, claiming that the

First Revocation violated the APA. Compl., ECF No. 1. Plaintiffs also filed a motion for

preliminary injunction. ECF No. 3. Shortly thereafter, USCIS agreed to reinstate the petition’s

approval while USCIS re-reviewed the petition, and the case was stayed pending that review. See

Pls.’ Mot. Stay, ECF No. 8. Plaintiffs withdrew their first motion for preliminary injunction. ECF

No. 7.

On March 24, 2025, while the case was stayed, USCIS issued a second Notice of Intent

to Revoke. Ex. B at 1. The USCIS again revoked the petition on August 11, 2025 (“Second

Revocation”). Id. First, USCIS determined that Y&N collaborated with another individual,

entity, or organization to submit multiple registrations in an attempt to unfairly increase Ms.

Sun’s chances of selection. Id. at 1–2. USCIS also noted that Ms. Wang, a paralegal, had

submitted the registration on Y&N’s behalf, despite not being an authorized representative or

Y&N’s employee. Id. at 3. The form instructions had indicated that registrations had to be filed

by the entity or its authorized representative. Id.

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