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Texas AG Ken Paxton sues Anzu Robotics over alleged China-linked drones

Lawsuit claims drones use Chinese manufacturer DJI technology and pose potential data and security risks to Texans

FILE - Texas Attorney General Ken Paxton makes a statement at his office, May 26, 2023, in Austin, Texas. (AP Photo/Eric Gay, File) (Eric Gay, Copyright 2023 The Associated Press. All rights reserved)

TEXAS – Texas Attorney General Ken Paxton announced Thursday that his office has filed a lawsuit against Anzu Robotics, accusing the company of misleading Texas consumers about the origin and security of its drone products.

According to the Attorney General’s Office, the lawsuit alleges that Anzu’s drones are rebranded products from Chinese drone manufacturer DJI and are tied to the Chinese Communist Party (CCP).

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The lawsuit marks the second major legal action filed this week by Paxton against a company described as aligned with China. On Wednesday, Paxton also sued TP-Link.

Paxton’s office claims Anzu failed to disclose its business relationship with DJI and falsely represented that its drones were not connected to the CCP.

The lawsuit further alleges that Anzu drones use DJI hardware, DJI-signed and encrypted firmware, and DJI software components. According to the Attorney General’s Office, those components leave “the same vulnerabilities intact.”

The Attorney General’s Office states that the U.S. government has taken steps to blacklist DJI drones due to concerns over links to the CCP, including worries that DJI technology could enable surveillance, data collection, and potential access by the Chinese government.

Paxton’s office alleges that DJI responded to those restrictions by partnering with Anzu Robotics and using it as a “passthrough entity” to continue selling DJI technology in the United States under a different name.

“Anzu Robotics products are nothing more than a 21st century trojan horse linked to the CCP,” Paxton said. “My office is taking several targeted actions against CCP-aligned companies this week to protect the people of Texas and stop Communist China’s influence in Texas.”

He added that no company will be allowed to “deceive Texans and serve as a pathway for foreign adversaries to exploit American markets, access personal data, or threaten our national security.”

According to the release, the Attorney General is seeking injunctive relief to halt what the lawsuit describes as deceptive practices in Texas. The state is also pursuing civil penalties and other relief authorized by law.

It is not immediately clear how Anzu Robotics has responded to the lawsuit.