L2 to H1 COS Denial

Dear experts,We are in a situation where your expert comment can help us in taking the right decision.My wife is in L2 visa and her employer filed L2 to H1 COS in CAP year 2015. I was in L1B visa during 2015 (expiration date December 2015). She got an RFE in August 2015 stating that primary L1 (me) did not have valid visa for more than 6 months. Meanwhile I applied for L1A and got approved L1A (and my wife got L2) in December 2016.After that my wife’s employer responded to the RFE with the new I-94 and new L2 visa of my wife.In June 2016, my wife’s H1B got denied with the reason ‘Primary applicant visa status changed and not same as when the petition was filed’.My wife is working with the immigration attorney of her company to appeal for the case, however they have not reached to a conclusion.Question - In our understanding the denial reason is incorrect because my wife’s petition was filed for L2 to H1 COS and she maintained that status (even though I changed from L1B to L1A, for my wife the old and new visa are still L2).Please suggest.

Even in worst case scenario, they should have denied the COS if they had issue with spouse’s immigration status. They shouldn’t have denied the entire H-1 petition.

Although wife’s status remained L-2, I think USCIS may have a good reason to deny the COS if spouse’s status moved from L-1B to L-1A. That is b/c the base information submitted at the time of filing in no longer correct.

Hopefully your attorney will have better ideas.