Turkcell vs MTN lawsuit to be dropped?
A Supreme Court ruling on the Alien Tort Statute has cast doubt over whether a bribery lawsuit brought by Turkcell against SA mobile operator MTN will go ahead in the US.
This follows the US Supreme Court’s decision to dismiss the Kiobel vs Royal Dutch Petroleum lawsuit, in a ruling which limited the jurisdictional reach of US courts under the Alien Tort Statute, the Wall Street Journal reported.
The Alien Tort Statute is a section of the US Code that reads: “The district courts shall have original jurisdiction of any civil action by an alien for a tort only, committed in violation of the law of nations or a treaty of the United States.”
This statute is notable for allowing US courts to hear human-rights cases brought by foreign citizens for conduct committed outside the US.
However, the dismissal of the Kiobel lawsuit has set a precedent which could be called upon in similar cases – such as the Turkcell vs MTN case, which was put on hold pending the outcome of the Kiobel case.
Turkcell put out a statement on Wednesday (17 April):
“Ultimately the US District Court for the District of Columbia will resolve how the Kiobel decision impacts the case, which Turkcell anticipates may be addressed in the coming weeks. Any comment on the impact of the decision on the case is inappropriate before action by the US district court, and Turkcell will withhold further comment at this time.”
Taking MTN to task
At the end of March 2012, Turkcell filed a legal action against MTN Group in the US district court in Washington, DC.
The Turkish firm alleges, principally, that MTN violated the US Alien Tort Statute by engaging in the bribery of an Iranian and a South African government official in connection with MTN obtaining a mobile licence in Iran.
Turkcell is seeking damages in the amount of $4.2 billion.
MTN has consistently maintained its innocence. In February, the group released the findings of the Lord Hoffmann committee, which it set up to review the allegations made by Turkcell.
Lord Hoffmann’s Committee determined that the Turkcell allegations are without foundation.
In publishing its Q1 2013 results late on Wednesday (17 April), Turkcell said:
“Considering extensive business dealings of both companies in the United States and due to the allegations that MTN breached rules of international law, the lawsuit has been filed in United States District Court for the District of Columbia. The lawsuit is pending.”
More on Turkcell and MTN
US senator alerts MTN case to treasury
Turkcell’s MTN lawsuit put on hold
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