A US federal court has refused to overturn its earlier decision allowing anti-terrorism claims against MTN Group to proceed, sending two lawsuits into discovery. The US district court for the eastern district of New York denied the company’s requests to reconsider the ruling or to be allowed an immediate appeal, MTN told shareholders and noteholders in a statement reported by TechCentral. The decision came on Friday, and MTN disclosed it on Tuesday, 29 September.
The two cases are Zobay v MTN Group Limited and Long v MTN Group Limited. They were brought by or on behalf of US service members and their families, who allege that MTN’s business dealings in Iran and Afghanistan benefited groups responsible for attacks on American personnel. MTN denies the allegations.
What the ruling changes
The court has not decided who is right. MTN said the rulings “are procedural and do not constitute a finding of wrongdoing or liability against MTN”. What changes is the stage of the case. Discovery is the phase in which each side must exchange documents and testimony. MTN said it gives the company a chance “to produce and solicit evidence to disprove plaintiffs’ allegations”, but it also means the plaintiffs can ask for MTN’s internal records.
At the earlier motion-to-dismiss stage a court takes the plaintiffs’ factual claims as true, so MTN could not contest them. After discovery, either side can ask for summary judgment, a decision based solely on the evidence produced, or the case can go to trial.
Two further Anti-Terrorism Act suits against MTN in the US, Cabrera and Chand and Davis, remain pending. MTN reported no material developments in them.
How the case got here
Zobay, which carries case number 21-cv-3503 in the eastern district of New York, reached its first big ruling on 28 September 2023 when the court decided MTN’s motion to dismiss. According to the published decision on FindLaw, it dismissed all claims against MTN Dubai Limited for lack of personal jurisdiction, but found MTN Group had enough contacts with the United States for the case against it to continue, and allowed aiding-and-abetting claims over attacks in Iraq to proceed. The plaintiffs are American citizens who were injured, or the families of those killed, in attacks in Iraq and Afghanistan.
The Anti-Terrorism Act allows victims of terrorism, including US service members and their families, to sue foreign entities they allege helped fund or facilitate attacks.
The case has also become political. In June 2025 US congresswoman Elise Stefanik wrote to Bank of New York Mellon asking it to look into MTN, citing alleged links to Iran and Hamas, and raising claims about President Cyril Ramaphosa’s financial interests that MTN called false and misleading. MTN responded publicly, as Daily Maverick reported, that the anti-terrorism case was at a stage where “the factual allegations have not been tested in court”.
Irancell and the balance sheet
MTN holds 49% of Iranian mobile operator Irancell, in which Iranian state and defence-linked entities hold the majority. MTN says it has no operational control over Irancell and has drawn no dividends since 2018. In the same Daily Maverick report, the company said: “we are minority shareholders of Irancell. We don’t have operating control.”
Sanctions have blocked a sale and the movement of money, leaving the investment on the balance sheet. In its August interim results MTN recorded an impairment of 213 cents per share linked to its Iranian operations.
MTN also disclosed in August 2025 that it is the subject of a US Department of Justice grand-jury investigation into its former Afghanistan business and its Irancell stake. MTN denies any culpability, says it will defend the proceedings vigorously and will consider all available legal options.
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