I think what constitutes a state secret should be left to the executive branch. if you disagree with an administration strongly enough, that is what elections are for.
but this is a pretty poor example of the government claiming a "state secret", and could very well allow the SCOTUS to invade their authority.
High Court to Consider State Secrets Doctrine For the first time in nearly 60 years, the Supreme Court on Tuesday will consider the limits of "state secrets," a legal doctrine the government often cites to quash lawsuits it says could expose information vital to national security.
The doctrine is well known for blocking former detainees from suing over abuses allegedly suffered in America's response to the Sept. 11, 2001 attacks.
But Tuesday's plaintiffs aerospace giants Boeing Co. and General Dynamics Corp., which contend the government violated their constitutional rights by invoking the state secrets privilege to trump their claims in a long-running contract dispute.
Because it lacks the polarizing context of the post-Sept. 11 lawsuits, some say case offers the justices a somewhat uncontroversial way to examine the implications of the doctrine. Over the past 50 years, "the privilege has gone from a relatively obscure doctrine to a centerpiece of the executive branch's litigation strategy," with "pernicious consequences for rule of law," the Constitution Project, a civil-liberties group, argued in a brief backing Boeing and General Dynamics. Tuesday's case presents "an opportunity to rethink the privilege for a new era," the group says.
Repeated administrations have used the doctrine to battle lawsuits on the grounds that certain evidence shouldn't be made public on the grounds it endangers national security.
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