The legal battle surrounding TRG Pakistan Limited has taken another significant turn after a United States court ruled that several claims brought by former TRG founder Zia Chishti cannot be pursued due to a release agreement executed in 2022.
In a notice submitted to the Pakistan Stock Exchange, TRG Pakistan disclosed that the United States District Court for the Southern District of New York (SDNY) issued a ruling on May 12, 2026, determining that claims connected to actions prior to January 10, 2022, were covered by a legally binding release and therefore barred from adjudication.
The ruling stems from proceedings initiated in New York in March 2023 concerning disputes between Chishti, The Resource Group International Limited, TRG Pakistan, and affiliated management entities. Judge Lewis Stanton, presiding over the matter, cited established legal precedent holding that a valid release agreement constitutes a complete bar to claims falling within its scope.
According to TRG Pakistan’s disclosure, the claims deemed released include allegations that the company and its affiliates engaged in shareholder oppression against Chishti.
The release agreement was signed in January 2022 during a redemption transaction through which Chishti reportedly received more than US$60 million from TRG International.
The ruling has drawn attention because several of the same allegations were also central to shareholder oppression proceedings initiated by Chishti before the Sindh High Court in Pakistan.
In June 2025, the Sindh High Court issued a ruling that included the cancellation of shares held by Greentree Holdings, the largest shareholder in TRG Pakistan. The decision effectively enhanced Chishti’s voting influence in the company and triggered an appeal by TRG before the Supreme Court of Pakistan.
Earlier this week, the Supreme Court dismissed the appeal through a short order while noting that detailed reasons would be issued separately.
Legal analysts say the latest SDNY ruling may create important legal and procedural questions regarding overlapping claims being litigated across jurisdictions. If certain claims were already released under a binding agreement and therefore incapable of adjudication, the implications for related proceedings elsewhere may become a subject of further legal examination.
TRG Pakistan stated in its filing that it is reviewing available legal remedies following the New York court’s determination.
The dispute itself has evolved into a wider contest over influence and control tied to TRG’s international asset structure, particularly assets housed within TRG International, an offshore entity operating outside the direct control of TRG Pakistan.
Company management has repeatedly expressed concerns regarding reputational and operational risks arising from association with Chishti, who previously faced legal findings related to sexual misconduct allegations in the United States.
With parallel proceedings continuing across multiple jurisdictions, the broader TRG conflict appears set to remain an active and closely watched corporate battle.