MTN’s United States anti-terrorism case reaches critical phase

The anti-terrorism case against MTN in the United States is moving ahead to the discovery phase, presenting a major headache for the South African telecoms giant. 

MTN updated shareholders late on 29 September regarding its ongoing court cases in the United States related to its business dealings in Iran.

In particular, MTN is alleged to have done business with the Islamic Revolutionary Guard Corps (IRGC)  in Iran alongside ZTE. 

This is referred to by MTN as the Zobay case, which began with a filing in 2021 where 50 Americans claimed MTN and ZTE did business with the IRGC.  

On 25 September, the US District Court for the Eastern District of New York denied MTN’s requests to reconsider or permit an immediate appeal of the earlier decision. 

The court had previously decided to allow certain claims under the US Anti-Terrorism Act to proceed. 

MTN said the rulings are procedural and do not constitute a finding of wrongdoing or liability against the company. 

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.

This is the stage at which the parties exchange information in their possession, after which the parties will have an opportunity to submit summary judgment motions.

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.

Under US law and procedure, MTN could not challenge the factual allegations against the company at the motion-to-dismiss phase; accordingly, no finding was made on the matter. 

In the next phases of the litigation, MTN said it will, for the first time, have an opportunity to produce and solicit evidence to disprove the plaintiffs’ allegations.

“MTN has deep sympathy for those who have been injured or lost loved ones as a result of the conflicts in Iraq and Afghanistan,” the company 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.