In a complaint filed Monday in the US District Court here, Ralls Corp. said Obama acted in "an unlawful and unauthorized manner" in issuing the order.
He gave no "reasoned explanation" for his decision to use a defence law in prohibiting the acquisition and ordering the company to divest four wind farms, Xinhua reported.
Obama and the CFIUS (foreign investment committee) failed to give it enough opportunity to be heard prior to prohibiting its acquisition of the wind farms, Ralls contended.
"Ralls continues to show its profound faith in transparency and due process, and seeks only fair treatment under the law and the Constitution," counsel for Ralls Corp. Tim Xia said in a statement.
President Obama Friday issued a presidential order to prevent Ralls Corp., from owning four wind farms in Boardman, Oregon, citing national security risks for their locations near the naval weapons systems training facility.
Ralls Corp. is owned by two executives of Sany Group, China's largest machinery manufacturer.
It was the first time in 22 years that a US president has blocked such a foreign business deal.