US Justice Department says Adani investors lost no money, moves to dismiss charges

The US Department of Justice filed a brief in the Eastern District of New York stating that investors incurred no financial loss on the securities at the centre of the criminal case against Indian billionaire Gautam Adani.

The filing notes that the securities were sold to sophisticated foreign underwriters and institutional buyers, that two notes are fully repaid and the other two remain current, and argues that the absence of loss and the nature of the investors weaken the prosecution, recommending dismissal. It also contends that most alleged misconduct occurred in India and that many statements amount to non‑actionable corporate puffery, suggesting only a civil remedy is appropriate.

DOJ critics the prior administration’s indictment as a “name and shame” effort with little prospect of trial, noting that a parallel civil case had already been settled.