Zia Chishti’s claims against TRG Pakistan Limited barred under 2022 release agreement, rules US court

A long-running court battle involving TRG Pakistan Limited and its former CEO, Zia Chishti, took a fresh turn after a US federal court ruled that key claims raised by Chishti had already been waived under a release agreement executed in 2022.

In a notice to the Pakistan Stock Exchange on Thursday, TRG Pakistan said the United States District Court for the Southern District of New York (SDNY) ruled that “claims by Mr Chishti against the company and its affiliates relating to actions undertaken prior to the 10 January 2022 date of the release agreement are forever released and cannot be adjudicated in any forum”.

TRG Pakistan said that the claims include “Mr Chishti’s claims that the company and its affiliates oppressed Mr Chishti in his capacity as a shareholder”.

TRG Pakistan said that the release agreement was signed by Chishti after he received over $60 million from TRG International in 2022 in a redemption transaction.

A release agreement is a legal contract under which one party agrees not to pursue legal action against another party as a standard part of a transaction.

TRG Pakistan said many of the claims addressed by the SDNY “were also the basis of various litigation proceedings initiated by Mr Chishti against the company and its affiliates in various forums, including a petition (JCM 12 of 2025) for shareholder oppression in the Sindh High Court”.

Chishti resigned from TRG in November 2021 after a US Congressional hearing disclosed an arbitration award against him for sexual harassment and assault. Following his resignation, he has sought to regain control of TRG, which management says would irreversibly damage the value of its assets due to his reputation.

This prolonged battle for control of TRG has emerged as one of Pakistan’s most significant corporate governance disputes, with shareholders waiting for the outcome with growing anticipation.

Days ago, Pakistan’s Supreme Court dismissed appeals filed by TRG Pakistan, Bermuda-based TRG International and shareholder Greentree Holdings against a lower court ruling that cancelled Greentree’s 30% stake in the Pakistan-listed company.

Subsequently, TRG International said ​the ruling would “be a ​significant shift in voting ⁠influence within TRG Pakistan toward Mr Zia Chishti.”

TRG International warned any renewed association with Chishti could create “serious reputational, governance, commercial, and stakeholder risks” for TRG-related entities.

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