The Securities and Exchange Commission of the United States and Gautam Adani, along with Sagar Adani, have together asked the court for more time to give the key documents in the civil securities lawsuit. They’ve given the US District Court for the Eastern District of New York a joint suggestion for a revised schedule for motions (requests to the court) and replies.
Joint filing and court context
This joint request follows the court telling both sides on April 7th to talk about what to do next. The parties told Judge Nicholas G. Garaufis that they’ve agreed on the new deadlines and have sent the suggested schedule to the court for approval; the schedule outlines when a motion to dismiss the case and the SEC’s response to it will likely happen.
In November 2024, the SEC sued Gautam Adani and Sagar Adani, saying they didn’t tell investors something important: an alleged bribe to officials in India. The SEC is basing its case on US laws about securities. The Adanis say these claims aren’t true and have indicated they will ask the court to throw the case out.
Proposed briefing schedule
According to the suggestion, the Adanis’ motion to dismiss would be due by June 8th. Then the SEC would have until August 7th to either change their complaint or explain why they disagree with the dismissal request, and the Adanis would have until September 21st to respond to that.
These new dates would replace a schedule approved in January. That earlier plan had April 30th as the deadline for the motion to dismiss, June 29th for the SEC’s reply, and August 13th for the Adanis’ response. The parties are asking to change these dates to give themselves more time to prepare and think about the case.
The filing also mentions possible dates for a pre-motion conference, and asks the court to set a timeline if it approves the schedule. The parties say they talked in a sincere attempt to create a workable calendar that allows for preparation while still being efficient for the court.
Pre-motion conference options
They suggested May 20th, May 22nd, or May 29th as possible dates for this pre-motion conference (depending on the court’s schedule). This conference would allow the judge to ask about procedural things and narrow down the issues before all the documents are fully submitted. It could also influence the court’s decision on the motion to dismiss.
If the court does hold this conference, the lawyers will likely explain the main legal disagreements and the extent of any investigation of evidence. This discussion could decide if the case will continue in the US and how the court will handle actions that supposedly happened outside the US under securities laws.
Defendants’ legal arguments
In a letter to the court on April tth, the Adanis said they plan to argue for dismissal on several grounds. They will argue that the case involves things that happened outside the United States and so applying US securities laws to it is illegal. They also are challenging whether the court even has authority over them.
The Adanis are also expected to say that the statements in question are too broad for investors to have based decisions on them. They also say they weren’t involved in a $750 million bond sale in 2021, which the SEC mentioned. These are the facts and legal points that will be at the center of the motion to dismiss.
If the court agrees with the Adanis’ arguments about jurisdiction and the details of the case, it could end the case early. But, if the court refuses to dismiss the case, it will move to the stage of gathering evidence and more legal action in the Eastern District of New York.
Representation and potential implications
Gautam Adani is being represented by Sullivan & Cromwell LLP, Sagar Adani by Nixon Peabody LLP and Hecker Fink LLP, and the SEC by its New York office. These legal teams will manage the new schedule for submitting documents and any pre-motion meetings with Judge Garaufis.
Changing the schedule is a common thing in complicated securities lawsuits that cross borders. Courts often allow more time for submitting documents when questions of jurisdiction and what happens outside the US are likely to determine how far the case goes. The upcoming motions and replies will make it clearer if the case will continue in US courts.
