The US Department of Justice informed a federal court that investors did not suffer financial losses in the securities linked to the case against billionaire Gautam Adani. The absence of investor losses weakens the government’s prosecution and supports its request to dismiss all charges.
According to the Department, none of the securities involved resulted in any financial harm, with some notes fully repaid and others showing no signs of default. The fact that the alleged victims were major financial institutions, not retail investors, further complicates the case.
The Department highlighted that the securities were initially sold to sophisticated foreign underwriters before being transferred to qualified institutional buyers and eventually to US investors. It argued that proving deception of such sophisticated entities in a criminal securities case would be challenging.
Moreover, even if investors were misled, the Department stated that there were no financial losses as the notes had been repaid or were performing well. It concluded that there were no losses to recover and no basis for restitution in the criminal case.
The filing also questioned the legal grounds for the securities fraud charges, emphasizing that the alleged misconduct primarily occurred in India. It criticized the previous administration’s handling of the case, suggesting that the indictment was more of a public accusation without a realistic trial prospect.
