Their legal claims are utter rubbish. They are basically speculating that without USG oversight ICANN might destroy the .GOV domain. They are claiming that the root is US government property – a claim that GAO has already discredited – and they are claiming the NTIA didn’t provide an opportunity for public comment.
As Michael Froomkin said on Twitter, it’s not a matter of whether these claims will succeed or not, it’s a matter of how quickly they will be dismissed.

From: NCSG-Discuss [mailto:[log in to unmask]] On Behalf Of Karel Douglas
Sent: Thursday, September 29, 2016 11:40 AM
To: [log in to unmask]
Subject: Re: Transition Lawsuit


Thanks Ed,

I scanned the pleadings and would be very interested to see how the Court will treat with their legal arguments. Thanks for sharing.

Regards

Karel Douglas