Issue
Fifth Amendment procedural due process
Doctrinal framework
Mathews v. Eldridge, 424 U.S. 319 (1976) — three-factor balancing of private interest, risk of erroneous deprivation, and government interest.
Liberty interest in federal-contracting eligibility and reputation under Greene v. McElroy, 360 U.S. 474 (1959); Trifax Corp. v. District of Columbia, 314 F.3d 641 (D.C. Cir. 2003); Old Dominion Dairy Prods. v. Sec'y of Defense, 631 F.2d 953 (D.C. Cir. 1980).
Status after the PI
Likelihood of success found. Court rejected the government's argument that a "complete prohibition" of the right to engage in a calling is required; under the D.C. Circuit's "reputation plus" test, a "broad preclusion" that "seriously affect[s], if not destroy[s]" the company's ability to obtain contracts is sufficient.
Court rejected the government's exigency theory based on contradictory record evidence (six-month transition plan; continued Claude use in Iran operations; days-earlier DPA threat treating Anthropic as essential).
Open questions
Whether § 3252's stripped-down procedure can ever satisfy Mathews when applied to a domestic, non-adversary contractor.
Whether a more elaborate notice-and-comment process would change the outcome.
Related on this site
Sources & authority
- 1.OpinionPI Opinion (Dkt. 134, N.D. Cal., Mar. 26, 2026) ·
source-docs/134-pi-opinion.txt - 2.AuthorityMathews v. Eldridge · 424 U.S. 319 (1976)
- 3.AuthorityGreene v. McElroy · 360 U.S. 474 (1959)
- 4.AuthorityTrifax Corp. v. District of Columbia · 314 F.3d 641 (D.C. Cir. 2003)
- 5.AuthorityOld Dominion Dairy Prods. v. Sec'y of Defense · 631 F.2d 953 (D.C. Cir. 1980)