On February 26, 2020, the United States Court of Appeals for the Federal Circuit ruled that XOtech does not qualify as an SDVOSB. XOtech, LLC, . v, United States, Docket No. 2019-1743 The LLC was manager managed. There were three managers and only one was a service disabled veteran. A majority vote of the managers was required to make certain business decisions. The Court ruled that this meant the service disabled veteran lacked control over the LLC.
The Court rejected XOtech’s argument that the service disabled veteran had control because he could remove a manager at will. The Court found that this was not enough since the service disabled veteran could not undo a vote of a managers after he was removed.
