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U.S. District Judge Ann M. Donnelly on July 1, 2025, denied Huawei’s motion to dismiss most of the federal indictment against the company and related entities in Brooklyn. The decision means prosecutors may take their case toward trial; it does not mean Huawei was convicted or that the judge found the allegations proven.
The 16-count prosecution is broader than an alleged “Iran deal.” It includes accusations involving Huawei’s relationship with Skycom, alleged misrepresentations to banks, Iran and North Korea sanctions violations, racketeering, trade-secret theft, wire and bank fraud, money laundering and obstruction.
What Judge Donnelly decided
Donnelly rejected Huawei’s request to throw out most of the indictment in United States v. Huawei Technologies. At this stage, a court generally assumes the government’s factual allegations are true and asks whether they describe legally sufficient offenses. The ruling therefore allows prosecutors to try to prove the charges before a jury.
The ruling was not a finding that Huawei committed crimes. Prosecutors still must prove each charge beyond a reasonable doubt, and the defendants remain presumed innocent.
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What prosecutors allege
Skycom and Iran-related business
The Justice Department alleges that Huawei concealed its relationship with Skycom, a company prosecutors describe as an unofficial Huawei subsidiary or controlled affiliate operating in Iran. The government says Huawei represented Skycom as an independent business while retaining control through another Huawei-controlled entity.
According to the 2019 charging announcement, Huawei allegedly arranged more than $100 million in Skycom-related transactions that were cleared through the United States between 2010 and 2014. Prosecutors say Huawei’s representations affected how banks assessed sanctions and compliance risks.
Bank and wire fraud theories
The indictment alleges that Huawei and associated individuals misled financial institutions about the company’s Iran operations, sanctions compliance and relationship with Skycom. Those alleged misrepresentations support separate bank-fraud and wire-fraud theories; they are not identical to the alleged sanctions offenses.
Sanctions and export controls
Prosecutors allege dealings involving Iran and North Korea violated the International Emergency Economic Powers Act and related restrictions. The operative indictment also describes Iran-related equipment or services that the government says were used by Iranian authorities for domestic surveillance. Whether those allegations satisfy every element of the charged offenses remains for trial.
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Racketeering and other alleged conduct
The case alleges a broader enterprise and pattern of activity, not one isolated transaction. The 2020 superseding indictment added racketeering and trade-secret counts and also alleges:
- theft of technology from six U.S. companies;
- money laundering and additional fraud;
- obstruction, including efforts to move witnesses beyond the government’s reach or conceal evidence; and
- conduct involving Huawei subsidiaries and affiliates, including a U.S. subsidiary.
The Justice Department’s charging announcements and the third superseding indictment set out the government’s detailed theories.
Why the case is in a U.S. court
The alleged conduct was not limited to Huawei’s headquarters or to transactions physically taking place in the United States. Prosecutors rely in part on alleged use of global banks that processed U.S.-dollar payments through U.S. financial institutions, as well as U.S. subsidiaries, communications and transactions affecting American companies. The government says banks could face U.S. penalties if they processed prohibited Iran-related business, making the alleged disclosures legally significant in the United States.
What “the Iran deal” gets wrong
“Iran deal” is shorthand used in some coverage, not a precise description of the indictment. The prosecution concerns a network of corporate relationships, banking representations, alleged sanctions and export-control violations, and other conduct. It is not simply a case about one contract between Huawei and the Iranian government.
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It is also important to distinguish the government’s allegation that Skycom was controlled by Huawei from an established fact. Huawei has denied wrongdoing and has challenged the government’s effort to treat affiliates as part of one criminal enterprise.
Meng Wanzhou’s separate case and later evidence ruling
Huawei CFO Meng Wanzhou was charged separately in the original 2019 case. Her matter ended in 2021 through a deferred-prosecution agreement. She signed a statement of facts acknowledging material misrepresentations to a financial institution about Huawei’s Iran-related business and sanctions compliance.
On June 18, 2026, Donnelly ruled that those admissions could be introduced against Huawei because Meng was the company’s CFO and the statements were relevant to the alleged conduct. The ruling concerns admissibility, not the weight a jury must give the evidence. Meng’s agreement was not a conviction of Huawei, and Huawei can still contest the prosecution’s interpretation and relevance of the statements. The court’s decision is available at the June 2026 order.
Huawei’s arguments and the presumption of innocence
Huawei challenged the sufficiency and territorial reach of the charges, the government’s racketeering theory, the trade-secret allegations and the use of evidence. Donnelly concluded those challenges did not require dismissal at the pleading stage; some depended on factual questions better resolved with a trial record.
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Huawei has denied the allegations. The Justice Department likewise states that the charges are allegations and that every defendant is presumed innocent unless proven guilty beyond a reasonable doubt.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What happened after the 2025 ruling?
Evidence challenges continued
On July 21, 2026, the court denied or treated as moot portions of Huawei’s motion to suppress evidence involving laptops and recordings. The ruling is reported in the suppression decision.
Trial timing
The prosecution remained pending as of August 18, 2026. An earlier May 4, 2026 trial setting was later moved, with subsequent coverage describing a fall 2026 trial window. The available reporting does not establish that a trial or verdict had occurred by that date. Scheduling coverage is available from Law360.
Bottom line
Donnelly’s July 2025 order kept a broad federal criminal case alive. It found that prosecutors’ indictment was legally sufficient to proceed, not that Huawei violated Iran sanctions, misled banks or stole trade secrets. Those factual and legal questions remain unresolved unless and until a jury reaches a verdict.
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Frequently Asked Questions
Was Huawei found guilty by the 2025 ruling?
No. Judge Donnelly denied Huawei’s motion to dismiss, allowing the prosecution to proceed. A conviction would require proof beyond a reasonable doubt at trial.
Is this only an Iran-sanctions case?
No. The indictment also alleges racketeering, trade-secret theft, bank and wire fraud, money laundering, obstruction and conduct involving North Korea and Huawei affiliates.
What does the Skycom allegation mean?
Prosecutors allege Huawei controlled or affiliated with Skycom in Iran while representing the relationship to banks as independent. Huawei disputes the government’s theory.
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