Afiniti founder Zia Chishti loses defamation case against ex-staffer in US

KARACHI: Pakistani-American tech entrepreneur and former CEO of TRG and AI firm Afiniti, Zia Chishti, has lost a defamation case against Tatiana Spottiswoode, a former employee of Afiniti, and her lawyers in the Washington DC District Court in the United States.

Chishti had initiated high-profile defamation lawsuit against Spottiswoode and her legal representatives, seeking $500 million in damages.

The court order said the defamation case filed by Chishti was a “thinly veiled attempt to undo the outcome of an arbitration that rejected Chishti’s account of events and ruled in Spottiswoode’s favour.”

“The first complaint filed by Chishti was so lengthy, salacious, and inappropriate that the Court struck it and ordered that it be amended…and plaintiffs have not found a legal basis for relief the second time around.

“Indeed, they attempted to prosecute this action attacking the arbitral award while barring defendants from referring to the very arbitral award plaintiffs seek to undermine…

“After a lengthy period of unduly contentious litigation, and upon review of the amended complaint and all of the parties’ submissions, the amended complaint will be dismissed,” the order read.

The lawsuit had come in the wake of Spottiswoode’s testimony to the US Congress, where she levelled detailed allegations of sexual harassment and assault against Chishti during a business trip.

“My wife and I seek compensatory damages in excess of $500 million including for direct financial losses, future financial losses, harm to my reputation, psychological harm to me, and harm to my wife’s enjoyment of our marriage,” Chishti had said in the complaint.

In 2021, following Spottiswoode’s testimony, Chishti stepped down as the CEO of Afiniti in the United States and as the CEO of TRG Pakistan.

His conduct was put in the spotlight when the US Congress passed bipartisan legislation aimed at prohibiting forced arbitration in cases of sexual harassment and sexual assault, a significant milestone influenced by Spottiswoode’s testimony.

The defamation case followed a previous arbitration award in which Chishti was ordered to pay over $5 million to Spottiswoode and her lawyers after the arbitrator found Chishti liable for sexual harassment, assault and battery. This arbitration award was subsequently publicised by the US House Judiciary Committee, further complicating Chishti’s legal standing.

Chishti’s lawsuit alleged that Spottiswoode’s statements were defamatory and damaging to his reputation.

The defamation suit was part of a broader pattern of legal actions by Chishti, who has been involved in multiple defamation claims against various parties, including media outlets such as The Telegraph and Narratives Magazine.

Further, in 2023, Chishti initiated criminal defamation proceedings in Karachi against the entire board of directors of his former company, TRG Pakistan, claiming that he was defamed by a Sindh High Court filing by TRG which alleged an illegal takeover attempt of TRG Pakistan by Chishti and the JS Group and contained references to Spottiswoode’s public testimony.

Zia Chishti co-founded the TRG Group and is also the founder of its associated software company Afiniti. He also co-founded of Align Technology.

Copyright Business Recorder, 2024

Disclaimer: A board member associated with Business Recorder also serves on the board of TRG. All opinions remain independent.