Gautam Adani Calls SEC Allegations Legally Flawed; Seeks Court Dismissal

Billionaire industrialist Gautam Adani on Wednesday sought dismissal of the SEC lawsuit against him, asserting that the claims over a 2021 bond sale by Adani Green Energy Ltd (AGEL) are legally flawed and fall outside US jurisdiction.

He maintained that neither he nor his nephew Sagar Adani had sufficient US contacts to establish personal jurisdiction, urging the Eastern District Court of New York to dismiss the case entirely.

In a pre-motion letter filed ahead of an April 30 hearing, the Adanis denied all allegations, stating that the SEC’s claims represent an impermissible extraterritorial application of American law.

The filing states that AGEL conducted its $750 million bond sale entirely in India through non-US underwriters and did not list the securities in the United States.

Any US-based purchases, the lawyers noted, were incidental and do not establish jurisdiction.

The defendants further argued that the complaint fails to state a valid claim, as they neither directed activities at US investors nor had direct involvement in the transactions cited.

Lawyers characterised statements on ESG, anti-corruption, and corporate reputation as non-actionable corporate optimism, not materially false or misleading.

Citing US Supreme Court precedent, the filing emphasised that the SEC has not demonstrated any ‘domestic transaction’ required for applying US securities law.

Sagar Adani, in particular, was not linked to a single alleged misstatement aimed at US investors. The Adanis confirmed their readiness to appear for a pre-motion conference if the court deems it necessary.

With this filing, the Adanis aim to challenge the legal basis of the SEC case while underscoring the absence of actionable wrongdoing, seeking a dismissal that would end the extraterritorial reach of the lawsuit.

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