New York, April 8 (NationPress) Billionaire industrialist Gautam Adani has filed a motion in a US court to dismiss a securities fraud lawsuit initiated by the Securities and Exchange Commission (SEC), asserting that the case is outside US jurisdiction and does not prove any misconduct. Adani contended that the lawsuit represents an improper application of US law beyond its borders and lacks personal jurisdiction.

Along with his nephew Sagar Adani, he is requesting a complete dismissal of the case and is willing to engage in a pre-motion conference if necessary. They have firmly denied all allegations and have submitted a pre-motion letter ahead of a scheduled motion to dismiss on April 30 in the Eastern District Court of New York.

In the pre-motion letter, Adani characterized the SEC's claims concerning a 2021 bond sale by Adani Green Energy Ltd (AGEL) as “legally flawed” for numerous reasons.

The defendants argue that the court does not have personal jurisdiction, as neither has sufficient connections to the US or direct involvement in the bond offering.

The filing emphasizes that the SEC's case is impermissibly extraterritorial, highlighting that the securities were not listed in the US, the issuer is Indian, and the alleged misconduct transpired entirely in India.

In September 2021, AGEL executed a $750 million bond offering under SEC Rule 144A and SEC Regulation S, which are exceptions for private resales to qualified institutional buyers (QIBs) and non-US sales.

These bonds were sold outside the US through an agreement with non-US underwriters, who subsequently resold the notes to QIBs. A small portion of those resales is claimed to have involved “investors in the United States.”

However, AGEL was not involved in these transactions, as asserted by the lawyers in their letter.

Additionally, the grounds for dismissal include the SEC's failure to present a claim, as the defendants are neither based in the US nor engage in activities there that would give the court jurisdiction, with the alleged actions involving non-US entities beyond the reach of US law.

Even if the claims were taken at face value, the complaint does not demonstrate any actionable legal violation or meet the necessary threshold for proceeding. The statements in question are neither materially false nor misleading, and without direct involvement in the offering, the defendants cannot be held liable, according to the letter.

The lawyers also noted that the SEC's complaint does not assert that Gautam Adani approved the issuance, participated in key meetings, or directed any engagement with US investors.

Citing precedents from the US Supreme Court, the defendants stated that the SEC failed to demonstrate any “domestic transaction,” which is essential for applying US securities laws.

The filing argues that the statements referenced by the SEC—pertaining to ESG commitments, anti-corruption practices, and corporate reputation—constitute non-actionable “puffery,” or general corporate optimism that investors cannot reasonably depend on.

The SEC has also not connected Sagar Adani to any specific allegedly false or misleading statement, particularly one directed at US investors, as highlighted in the letter.