US Court bars Zia Chishti from pursuing released claims

June 12, 2026 (MLN): U.S. federal court has temporarily restrained its former chief executive and founder, Zia Chishti, from pursuing litigation linked to claims that were previously deemed released under a settlement agreement.

This marked the latest development in a multi-jurisdictional legal battle over control of the company and its affiliates.

In a notice to the Pakistan Stock Exchange on Friday, TRG Pakistan disclosed that the United States District Court for the Southern District of New York (SDNY) issued an order on June 10, 2026, preventing Zia Chishti from initiating or pursuing litigation in any forum based on claims covered by an earlier ruling issued on May 12, 2026.

The order will remain effective until July 1, 2026, while the court considers whether broader injunctive relief should be granted following additional submissions from the parties.

According to the company, the SDNY had ruled on May 12 that claims by Chishti against TRG Pakistan and its affiliates relating to conduct before January 10, 2022, the date of a release agreement, had been permanently released and could not be litigated in any jurisdiction worldwide.

TRG said several of those claims formed the basis of legal proceedings initiated by Zia Chishti across multiple forums, including a shareholder oppression petition pending before the Sindh High Court.

The U.S. court also noted that it had previously issued a preliminary injunction preventing Zia Chishti from asserting claims filed in a U.S. arbitration within Pakistani litigation proceedings, adding that the same legal reasoning applied in the present matter.

The latest ruling comes amid an intensifying struggle for influence over TRG Pakistan that has seen parallel proceedings in Pakistan and the United States.

Last month, Pakistan’s Supreme Court dismissed appeals filed by TRG International, Greentree Holdings and related parties, effectively upholding a Sindh High Court judgment that declared Greentree’s acquisition of nearly 30% of TRG Pakistan’s shares unlawful.

The decision was widely viewed as strengthening the voting position of Chishti and other minority shareholders.

However, Zia Chishti’s influence within the company has since diminished following the enforcement of pledged shares held against a loan facility.

On May 21, JS Bank acquired 81.36 million TRG shares, representing 14.92% of the company, through the enforcement of collateral pledged by Chishti.

At the disclosed transaction price of Rs62.92 per share, the block was valued at approximately Rs5.12 billion.

Following the transaction, entities associated with the JS Group collectively increased their stake in TRG Pakistan to around 29.3%, while Chishti’s holding fell to roughly 1.2%, significantly altering the company’s shareholder landscape.

TRG Pakistan said it is currently reviewing its legal options in light of the latest U.S. court order.

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