Gautam Adani says that the US Securities and Exchange Commission fraud case against him should be dismissed, with his lawyers arguing that the Wall Street regulator’s case “fails” for multiple reasons.
Lawyers for the Indian billionaire and his nephew Sagar Adani said in a letter to a federal judge in Brooklyn, New York, on Tuesday that they will formally seek to dismiss the case by the end of the month. The US SEC, the attorneys said, lacked necessary jurisdiction over the two men and that the alleged misstatements underpinning the case weren’t actionable.
The SEC’s lawsuit, filed in November 2024, alleges that the Adanis violated US securities laws by making false and misleading representations about Adani Green Energy Ltd. In addition to the SEC’s civil complaint, federal prosecutors in Brooklyn charged the Adanis and others with allegedly helping drive a $250 million bribery scheme in India to lock in solar-power contracts.
Gautam Adani chairs the Adani Group conglomerate and Sagar Adani is executive director at Adani Green Energy. Neither the conglomerate nor its corporate units were sued by the US SEC.
Both the criminal and US SEC cases stalled with the Adanis in India. The Adani Group has called the US allegations “baseless”.
According to the US SEC’s 2024 lawsuit, Gautam Adani spearheaded an effort to pay or promise hundreds of millions of dollars in bribes to Indian state officials to induce them to enter contracts that Adani Green needed to develop India’s largest solar power plant project.
At the same time, he and his nephew falsely touted the company’s compliance with anti-bribery principles and laws in connection with a $750 million bond offering, the US SEC said.
An SEC spokesperson declined to comment on the letter from Adanis’ lawyers.
The lawyers argued that because American regulators couldn’t bring a case for alleged violations of US anti-bribery claims against the Adanis, they instead “recast” it as securities fraud. The Adanis also dispute that there’s “any credible evidence supporting the purported bribery scheme”, the attorneys wrote.
Tuesday’s letter to the judge was signed by Gautam’s lawyers at Sullivan & Cromwell led by Robert Giuffra Jr. Sean Hecker at Hecker Fink and Timothy D. Sini at Nixon Peabody also signed as counsel for Sagar Adani.
“Fatally, the complaint does not allege that Gautam Adani authorized the issuance of the bonds or otherwise personally directed any relevant conduct at the United States,” the lawyers said.
The lawyers said on Tuesday they will file a formal motion to dismiss by 30 April but told US District Judge Nicholas Garaufis in Brooklyn they would be ready to attend a pre-motion conference if he scheduled one.
Later Tuesday, the judge directed parties in the case to confer on scheduling one.
Adani Enterprises Ltd., conglomerate’s flagship, jumped as much as 11.5% on Wednesday in Mumbai while other nine Adani stocks also rose during trading. The day’s surge added almost $11 billion to the group’s total market value.