Last month, the D.C. Circuit in In re: Sealed Case, 2025 WL 2013687 (D.C. Cir. July 18, 2025) invalidated a non-disclosure order (“NDO”) that applied to prospectively issued subpoenas, holding that it failed to meet the statutory requirements in 18 U.S.C. § 2705(b) of the Stored Communications Act.  

Section 2705(b) permits the government to apply for a non-disclosure order barring a provider from notifying a subscriber or customer that it has received legal process.  A court must issue such an order if it finds “reason to believe” that disclosure would result in one of the statute’s enumerated harms, such as destruction of evidence or intimidation of potential witnesses.

In In re: Sealed Case, X Corp. moved to vacate or modify an magistrate court-issued NDO and associated “authorizing order” (together, “the NDO”), which barred disclosure of any subpoena—including not-yet-issued subpoenas—relating to a particular investigation for one year.  X argued that the order was not authorized under § 2705(b) and violated the First Amendment.  The district court denied X’s motion, finding that the NDO was statutorily authorized and constitutional.  In re: Sealed Case, 2025 WL 2013687, at *1-2. 

On appeal, the D.C. Circuit held that the NDO violated § 2705(b) because the magistrate court had not found “reason to believe” that notification of the existence of prospectively-issued subpoenas would result in the harms enumerated in § 2705(b).  The court based this holding on two grounds:

  • First, the NDO applied prospectively, allowing the government to apply the NDO to subsequently issued subpoenas.  As a result, to make the necessary § 2705(b) finding, the magistrate court needed to have “reason to believe” that disclosure not only ”presently risks harm, but also … that risk of harm would still exist for a subpoena issued many months later.”  Id. at *4.  In other words, the magistrate judge could not base her “reason to believe” determination “on the facts as they were when the government submitted its application” because the subpoenas to which the NDO might eventually apply were not before her at that time.  Id.
  • Second, the court held that the NDO provided “no meaningful limit” on the potential targets of the future subpoenas.  Id. at *5.  Rather, the NDO “permitted the government to attach the NDO to any subpoena for user records of any account with any service provider that it determined was relevant to its investigation.”  Id. (emphasis added).  Because the NDO’s scope “was dictated in part by the reach of the government’s investigation, it would be difficult for a court to predict whose accounts might be subpoenaed.”  Id.

The court concluded that given these facts, it would be “exceedingly difficult” for a magistrate court to “reasonably predict” what subpoenas might be covered by the NDO or have “a ‘reason to believe’ that disclosure of all those subpoenas ‘will result’ in harm.”  Id.  On this basis, the court reversed the district court’s judgment and invalidated the NDO.  Because the court found that the NDO was invalid under § 2705(b), it declined to reach X’s alternative argument challenging the NDO on First Amendment grounds.

Photo of Jim Garland Jim Garland

Jim Garland’s practice focuses on government investigations and enforcement matters, litigation, and cybersecurity. Recognized by Chambers USA as a leading practitioner in both the white collar and cybersecurity categories, Jim draws upon his experience as a former senior Justice Department official to advise…

Jim Garland’s practice focuses on government investigations and enforcement matters, litigation, and cybersecurity. Recognized by Chambers USA as a leading practitioner in both the white collar and cybersecurity categories, Jim draws upon his experience as a former senior Justice Department official to advise clients on sensitive, multidimensional disputes and investigations, often with national security implications. He previously served as co-chair of Covington’s “Band 1”-ranked White Collar and Investigations Practice Group and currently is a member of the firm’s Management and Executive Committees.

Jim regularly represents corporate and individual clients in government investigations and enforcement actions. He has successfully handled matters involving allegations of economic espionage, theft of trade secrets, terrorism-financing, sanctions and export control violations, money laundering, foreign bribery, public corruption, fraud, and obstruction of justice. He has particular expertise advising clients in connection with investigations and disputes involving electronic surveillance and law enforcement access to digital evidence.

Jim has substantial experience litigating high-stakes, multidimensional disputes for clients across a range of industries, including companies in the high-tech, financial services, defense, transportation, media and entertainment, and life sciences sectors. Many of his civil representations have substantial cross-border dimensions or involve parallel government enforcement proceedings in multiple forums.

In conjunction with his investigations and litigation practice, Jim regularly assists clients with cybersecurity preparedness and incident-response matters. He helps clients in assessing security controls and in developing policies and procedures for the protection of sensitive corporate data. He also regularly assists companies in responding to significant cybersecurity incidents, including in connection with criminal and state-sponsored attacks targeting customer and employee data, financial information, and trade secrets.

From 2009 to 2010, Jim served as Deputy Chief of Staff and Counselor to Attorney General Eric Holder at the U.S. Department of Justice. In that role, he advised the Attorney General on a range of enforcement issues, with an emphasis on criminal, cybersecurity, and surveillance matters.

Photo of Alexander Berengaut Alexander Berengaut

Alex Berengaut is a nationally recognized litigator and co-chair of the firm’s Government Litigation practice. He has served as lead counsel in a range of commercial disputes and government enforcement proceedings, and currently represents several leading technology companies in litigation and compliance matters…

Alex Berengaut is a nationally recognized litigator and co-chair of the firm’s Government Litigation practice. He has served as lead counsel in a range of commercial disputes and government enforcement proceedings, and currently represents several leading technology companies in litigation and compliance matters relating to data privacy, platform liability, artificial intelligence, and cybersecurity.

In recent years, Alex’s practice has focused on high-stakes disputes involving novel exercises of government power. For over four years, Alex has served as lead counsel to TikTok in defending against legal challenges to its operations in the United States, including by delivering the winning argument in 2020 that blocked a nationwide ban of the app hours before it was set to take effect. He also represented Xiaomi Corporation in challenging the Department of Defense designation that would have barred the company from U.S. financial markets, delivering the winning argument that led the court to enjoin the designation, restoring $10 billion to Xiaomi’s market capitalization.

At the state level, Alex has successfully challenged unconstitutional state legislation and defended against state consumer protection actions—a string of victories which resulted in Alex being recognized as Litigator of the Week, as well as a Law360 MVP in both the Cybersecurity & Privacy and the Technology categories.  

Alex has served as counsel to Microsoft Corporation in precedent-setting cases involving government surveillance issues, including Microsoft’s landmark challenge to the government’s attempt to compel disclosure of customer emails stored in Ireland using a search warrant; Microsoft’s First Amendment challenge in the Foreign Intelligence Surveillance Court to restrictions on disclosures about government surveillance; and Microsoft’s constitutional challenge to the statute that allows courts to impose gag orders on technology companies, resulting in nationwide reform of the government’s practices under the statute.

Alex maintains an active pro bono practice, focusing on trial-level indigent criminal defense and youth immigration matters. From 2017 to 2020, Alex represented the University of California in challenging the rescission of the Deferred Action for Childhood Arrivals (DACA) program, ultimately resulting in a 5-4 victory in the U.S. Supreme Court.

Photo of Megan Crowley Megan Crowley

Megan Crowley is a nationally recognized litigator who represents clients in complex, high-stakes cases at the intersection of law, government, and policy. As Co-Chair of Covington’s Government Litigation practice, she combines strategic foresight with public-sector experience, having previously litigated high-impact constitutional, statutory, and…

Megan Crowley is a nationally recognized litigator who represents clients in complex, high-stakes cases at the intersection of law, government, and policy. As Co-Chair of Covington’s Government Litigation practice, she combines strategic foresight with public-sector experience, having previously litigated high-impact constitutional, statutory, and administrative law cases at the U.S. Department of Justice.

For more than five years, Megan has co-led Covington’s representation of TikTok in litigation concerning privacy, data security, and government regulation—some of the most consequential technology cases of the past decade. In 2020, she co-led Covington’s successful challenge to the Executive Order seeking to ban TikTok’s operations in the United States. In 2023, she and the team obtained a preliminary injunction blocking Montana’s statewide ban on TikTok—the first ruling of its kind. Since 2024, Megan has continued to co-lead Covington’s representation of TikTok in matters arising under the Protecting Americans from Foreign Adversary Controlled Applications Act, including proceedings before the D.C. Circuit and the U.S. Supreme Court, as well as related issues critical to the platform’s ongoing U.S. operations.

Megan has also achieved significant victories for other clients facing complex regulatory and constitutional challenges. She played a pivotal role in Covington’s successful representation of Xiaomi Corporation in overturning a Department of Defense designation that would have barred the company from U.S. financial markets, and has represented major global companies in administrative and appellate litigation involving data security, government regulation, and consumer protection.

In addition to her federal work, Megan has defended clients in State Attorney General enforcement actions. She delivered the winning argument that led to the complete dismissal of an Indiana Attorney General consumer protection action—one of several matters in which she has successfully opposed novel applications of state enforcement authority.

Beyond the courtroom, Megan advises clients on constitutional and administrative law issues, regulatory compliance, and emerging legislative frameworks governing online platforms. Her practice also encompasses litigation under Section 230 of the Communications Decency Act, the Administrative Procedure Act, the Electronic Communications Privacy Act, and the First Amendment.

Her achievements have earned broad recognition. The American Lawyer named her “Litigator of the Week” for her successes, and Law360 has recognized her as a Rising Star in Cybersecurity & Privacy.

Megan maintains a robust pro bono practice, focused on civil rights litigation. She played a central role on the team representing the University of California in its challenge to the government’s rescission of the Deferred Action for Childhood Arrivals (DACA) program, obtaining a nationwide injunction and, ultimately, a 5-4 victory in the U.S. Supreme Court.

Photo of Diana Lee Diana Lee

Diana Lee is an associate in the technology regulatory group. She counsels clients on a range of regulatory and litigation matters involving electronic surveillance, government demands for data, national security, and data privacy and cybersecurity issues, with a particular focus on cross-border and…

Diana Lee is an associate in the technology regulatory group. She counsels clients on a range of regulatory and litigation matters involving electronic surveillance, government demands for data, national security, and data privacy and cybersecurity issues, with a particular focus on cross-border and multi-jurisdictional concerns.

Before rejoining the firm, Diana clerked for the Honorable Victor A. Bolden on the U.S. District Court for the District of Connecticut.

Diana is a member of the Bars of New York and the District of Columbia.