South African telecommunications giant MTN Group is facing a new stage in a series of anti-terrorism lawsuits in the United States, after a federal court rejected its bid to reconsider an earlier ruling.
The US District Court for the Eastern District of New York ruled on 25 September that MTN’s requests for reconsideration and an immediate appeal in the Zobay v. MTN Group Limited case would not be granted. The related Long v. MTN Group Limited case will also proceed to the discovery phase.
Discovery is the stage of litigation in which both sides exchange relevant evidence and information. MTN said the rulings are procedural and do not amount to a finding of wrongdoing or liability.
MTN is facing several lawsuits brought under the US Anti-Terrorism Act. The cases include Zobay, Long, Cabrera and Chand & Davis, with claims involving the group’s former operations and business interests in Afghanistan, Iran and Syria.
The allegations include claims that MTN made payments to militant groups, including the Taliban, to protect its operations in Afghanistan. Other claims concern MTN’s former involvement in Iran and alleged links to the Islamic Revolutionary Guard Corps. MTN has consistently denied wrongdoing.
The latest ruling means the Zobay and Long matters will now move into discovery, bringing the cases closer to a stage where evidence behind the competing claims can be examined.
MTN has said it will continue to defend the proceedings and believes the evidence will demonstrate that it was not a culpable participant in the attacks at issue.
The company is also facing a separate US Department of Justice grand jury investigation relating to MTN Group, its former subsidiary in Afghanistan and Irancell. MTN previously said it was voluntarily cooperating with the investigation.