Yesterday, a DC District Court ordered VA/CVE to go back and reconsider a SDVOSB verification application that it had denied. This appears to be the first known court challenge of a VA SDVOSB verification denial. The court held that VA failed to provide a satisfactory explanation for the denial. The judge found that "the defects in the VA's written decisions are so many and so significant that they affect the whole, and preclude the Court from effecively exercising its review function." Ultimately, the court concluded that CVE's denial did not have a rational basis. It's a good read - you can find the decision here:
VA-Court-Decision