United States anti-terrorism case against South Africa’s MTN moving ahead
South African telecom group MTN says the anti-terrorism case against it in the United States will proceed to the discovery phase after a New York court denied its request to reconsider.
MTN is currently facing several cases, the Cabrera, Zobay, Long, and Chand & Davis cases, against it, brought under the US Anti-Terrorism Act.
The complaints brought in the cases pertain to MTN’s former operations in Syria, Afghanistan and Iran.
Among the allegations against MTN was that it paid protection money to the Taliban for the security of its towers, thereby financing terrorist activity and causing the deaths of US military personnel.
The latest update relates to the Zobay and Long cases, with MTN noting that there are no material updates on the Cabrera, Chand & Davis cases.
The group also stressed that the rulings are procedural and do not constitute a finding of wrongdoing or liability against MTN.
MTN noted that the US District Court for the Eastern District of New York denied MTN’s requests to reconsider, or permit an immediate appeal of, its earlier decision allowing certain claims under the US Anti-Terrorism Act in Zobay v. MTN Group Limited to proceed.
The Zobay case, together with the related Long v. MTN Group Limited case pending in the same court, will now proceed to the discovery phase, it said.
This is the stage at which the parties exchange information in their possession.
“After the discovery phase concludes, the parties will have an opportunity to submit summary judgment motions,” it said.
These are requests that the court award judgment as a matter of law based on the evidence produced during discovery.
Should the parties decline to move for summary judgment, or if the court denies the motions, then the case will proceed, MTN noted.
“Under US law and procedures, MTN could not challenge the factual allegations made against the company at the motion-to-dismiss phase, and accordingly, there is no finding made on the matter,” it said.
“In the next phases of the litigation, MTN will, for the first time, have an opportunity to produce and solicit evidence to disprove plaintiffs’ allegations.”
MTN has long denied the allegations of wrongdoing against it.
“MTN has deep sympathy for those who have been injured or lost loved ones as a result of the conflicts in Iraq and Afghanistan,” it said.
“MTN continues to believe that the evidence will demonstrate that MTN was not a culpable participant in the attacks at issue.”
MTN said it will continue to defend the proceedings vigorously, consider all available legal options and update shareholders on material developments as appropriate.
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