ZTE, US prosecutors told to oppose opening of case records

Reuters and Dow Jones on Monday brought a motion to seal the record in the US case against China’s ZTE, arguing that access rights and privacy do not serve the public interest.

ZTEOne of the world’s top telecommunications equipment makers pleaded guilty in 2017 to conspiring to violate US export laws by illegally shipping US goods to Iran.

As part of a deal with prosecutors, the company paid a historic $892 million (about Rs 7,000 crore) in fines and agreed to three years of probation and surveillance, a period before ending in March. Extended for two more years.

In the probationary period, almost all hearings and most filings in the case were kept from the public.

“For nearly five years, the business of this case has been conducted in almost complete secrecy,” the news organizations wrote in their motion to interfere with the records and close them. “This widespread boycott of the press and the public is contrary to the enormous interest in public outreach.”

According to news outlets represented by the Washington-based Reporters’ Committee for Freedom of the Press, the right of access exists under both common law and the First Amendment to the U.S. Constitution.

The filing said that both ZTE and US prosecutors have indicated that they oppose the closure of the proposal. A spokesman for the US Department of Justice declined comment, and the company did not immediately respond to a request for comment.

Sealed records include reports from monitors evaluating the company’s compliance with US export control laws. According to a 2017 agreement on the monitor attached to the petition deal, “all reports, submissions or other material included in this agreement shall be filed under seal and all court proceedings shall be conducted on camera.”

Also, monitor bills have been sealed, which, sources said, sometimes goes up to millions of dollars in a month.
In 2017, Reuters reported that Monitor, Dallas attorney James Stanton, lacked experience in US export controls when he was asked by his self-described mentor, US District Court Judge Ed Kinkade, the Texas judge who presided over the case. was appointed by.

A filing related to Stanton’s appointment is under seal.

Stanton did not respond to a request for comment on Monday and the judge’s chambers said he was not expected to return until next week. In 2017, Stanton and Kinkade did not respond to Reuters requests for comment.

© Thomson Reuters 2022