In a significant development in the ongoing legal battle surrounding TRG Pakistan Limited, a United States court in New York has ruled that several claims brought by former TRG founder Zia Chishti are barred under a release agreement signed in 2022.
According to a disclosure submitted by TRG Pakistan to the Pakistan Stock Exchange, the United States District Court for the Southern District of New York (SDNY) ruled on 12 May 2026 that claims relating to events prior to January 10, 2022 had been “forever released” and therefore could not be adjudicated in any forum.
The ruling was issued by Judge Lewis Stanton in proceedings connected to a long-running arbitration dispute involving The Resource Group International Limited, TRG Pakistan, and affiliated management entities.
At the center of the ruling is a Release Agreement signed by Chishti in January 2022, when he reportedly received more than US$60 million from TRG International as part of a redemption transaction. The SDNY, identified as the court of exclusive jurisdiction under the agreement, held that claims covered by the release could not proceed further.
The court specifically ruled that shareholder oppression claims asserted by Chishti against TRG Pakistan and related entities were among the claims barred by the release agreement.
The development carries potential implications for parallel litigation proceedings in Pakistan. Several of the allegations referenced in the New York proceedings also formed the basis of shareholder oppression litigation initiated by Chishti before the Sindh High Court earlier this year.
In June 2025, the Sindh High Court ruled in favor of Chishti in Petition JCM 12 of 2025, ordering the cancellation of shares held by Greentree Holdings, the largest shareholder in TRG Pakistan, a move that significantly strengthened Chishti’s voting position within the company.
TRG Pakistan subsequently challenged the ruling before the Supreme Court of Pakistan. The apex court reserved its verdict in February 2026 before recently dismissing the appeal through a short order, while indicating that detailed observations would follow in a forthcoming judgment.
Legal observers note that the SDNY ruling introduces a new layer of complexity into the broader dispute. Questions are now likely to arise regarding the legal standing of claims that may already have been deemed released and non-adjudicable by a court of competent jurisdiction in the United States.
In its stock exchange filing, TRG Pakistan stated that it is evaluating its legal options in light of the latest ruling.
The broader dispute has increasingly come to be viewed as a battle for influence over the group’s international assets, particularly those housed under TRG International, an offshore entity not directly controlled by TRG Pakistan.
TRG management has repeatedly maintained that association risks linked to Chishti could negatively impact international operations and stakeholder interests. Chishti previously faced allegations of sexual misconduct in the United States, which resulted in legal and corporate repercussions during his tenure at various affiliated companies.
Despite the latest New York ruling, the long-running corporate and legal confrontation surrounding TRG appears far from over, with further proceedings in both Pakistani and international forums likely in the months ahead.