US court declines TRG Pakistan’s request for injunction against former CEO’s Pakistan litigation

TRG Pakistan Limited has informed the Pakistan Stock Exchange that the United States District Court for the Southern District of New York has declined to grant injunctive relief sought by the company and The Resource Group International Limited against litigation initiated in Pakistan by former chief executive officer Zia Chishti.

In a notice sent to the exchange on Friday, TRG Pakistan said it received a copy of the order issued by the New York court on July 1, 2026. The order came after a Temporary Restraining Order against Chishti, received on June 10, expired on July 1.

The company said the injunctive relief sought from the court included restraining certain litigation proceedings initiated by Chishti in Pakistan against TRG Pakistan and its affiliates.

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TRG Pakistan said the July 1 order was limited to its request for injunctive relief under the legal standard applicable to such injunctions. It added that the order does not alter the court’s earlier May 12, 2026, ruling.

According to the company, the May 12 ruling concluded that claims by Chishti against TRG Pakistan and its affiliates relating to actions taken before January 10, 2022, the date of the Release Agreement, were “forever released” and cannot be adjudicated in any forum worldwide.

The company has previously said the ruling covered Chishti’s allegations that TRG Pakistan and its affiliates oppressed him as a shareholder. It has also said that Chishti executed the Release Agreement in 2022 after receiving more than $60 million from TRG International in a redemption transaction.

According to the company’s earlier position, several claims considered by the New York court had also been raised in proceedings initiated by Chishti in other jurisdictions, including a shareholder oppression petition JCM 12 of 2025 before the Sindh High Court.

TRG Pakistan said the May 12 ruling remains in effect and has been appealed by Chishti before the Second Circuit Court of Appeals in New York.

The company said it is reviewing its legal options after the July 1 order, including the possibility of filing an appeal before the Second Circuit.

The dispute is part of a broader corporate governance battle involving control and shareholder rights at TRG Pakistan.

The latest development follows the Supreme Court of Pakistan’s dismissal of appeals by TRG Pakistan, TRG International and Greentree Holdings against a lower court order cancelling Greentree’s 30% stake in the Pakistan-listed company.

TRG International had said that decision would significantly increase Chishti’s voting influence in TRG Pakistan and warned that any renewed association with him could create reputational, governance and commercial risks.

Chishti resigned in November 2021 after a US congressional hearing disclosed an arbitration award involving allegations of sexual harassment and assault.