By Chris Wack

Luokung Technology Corp. said the U.S. Department of Defense has removed the company's designation as a Communist Chinese military company.

The China-based technology company said it is no longer subject to restrictions on trading of its shares as a result of the move and it is ending its lawsuit on the matter.

Luokung was one of several companies deemed by the Trump administration to have ties to the Chinese military. Luokung filed a lawsuit in March arguing that the designation was unlawful. The company won a preliminary injunction by the U.S. District Court of the District of Columbia in May that allowed its shares to continue trading on the Nasdaq stock exchange.

Luokung said Tuesday that the Defense Department confirmed the designation to the company and the district court. Luokung said it has filed a joint stipulation to have its lawsuit challenging the designation voluntarily dismissed, which will bring the lawsuit to a close.

Luokung has regained eligibility for inclusion in the FTSE GEIS (Micro Cap) index and expects to be re-included in the index when the stock market opens June 21.

Write to Chris Wack at chris.wack@wsj.com

(END) Dow Jones Newswires

June 15, 2021 09:54 ET (13:54 GMT)