Gautam Adani Seeks Dismissal Of SEC Fraud Case, Cites Legal Flaws

Adani Group Chairman Gautam Adani has argued that the US Securities and Exchange Commission (SEC) fraud case against him should be dismissed as the case "fails" to establish any wrongdoing - a Bloomberg report cited.

The legal line of defence for Adani, and his nephew, Sagar Adani, in a letter to a federal judge in Brooklyn, New York, on Tuesday, noted that they will formally seek to dismiss the case by the end of the month.

The attorneys argued that the SEC lacked necessary jurisdiction over the two individuals and that the alleged misstatements underpinning the case weren’t actionable.

As per the SEC’s lawsuit, filed in November 2024, it is alleged that Adani violated US securities laws by making false and misleading representations about Adani Green Energy Ltd.

Additionally, the SEC’s civil complaint, federal prosecutors in Brooklyn charged Gautam Adani, Sagar Adani, and others with allegedly supporting a $250 million bribery scheme in India to lock in solar-power contracts.

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However, neither the Adani conglomerate nor its corporate units were sued by the SEC.

Both the criminal and SEC cases stalled with the Adanis in India. On the other hand, the Adani Group has called the US allegations “baseless.”

As per the regulator’s 2024 lawsuit, Gautam Adani spearheaded an effort to pay or promise hundreds of millions of dollars in bribes to Indian state government officials to induce them to enter contracts that Adani Green needed to develop India’s largest solar power plant project, citing a Bloomberg report. 

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 SEC said.

The lawyers argued that because the US regulators couldn’t bring a case for alleged violations of US anti-bribery claims against the Adanis, they are attempting to “recast” it as a securities fraud. The Adanis also dispute that there’s “any credible evidence supporting the purported bribery scheme,” the attorneys wrote.

The letter to the judge dated Tuesday was inked 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. 

“Fatally, the complaint does not allege that Gautam Adani authorized the issuance of the bonds or otherwise personally directed any relevant conduct in the United States,” the lawyers added, a Bloomberg report cited.