MTN’s long-running legal battle in the United States has moved to the next stage after a federal judge rejected the South African telecom giant’s requests to reopen earlier rulings and seek an immediate appeal in two terrorism-related lawsuits.
US District Judge Carol Bagley Amon denied MTN’s requests for reconsideration and permission to appeal immediately in the Zobay v. MTN Group Limited case and a related case involving the Long plaintiffs.
The decision means both cases can now proceed to discovery, the stage of litigation in which the parties exchange documents, seek evidence and question relevant witnesses.
The lawsuits involve allegations concerning MTN’s former telecommunications operations in Iran and Afghanistan. The plaintiffs allege that some of the company’s activities assisted entities linked to attacks carried out in the region.
MTN has denied the allegations and stressed that the court has not found the company liable for the attacks.
The company said the latest rulings were procedural and did not amount to a finding that it had engaged in wrongdoing.
“The rulings are procedural and do not constitute a finding of wrongdoing or liability against MTN,” the company said in a statement.
MTN said the next stage of the cases would give it an opportunity to present evidence challenging the allegations.
“In the next phases of the litigation, MTN will, for the first time, have an opportunity to produce and solicit evidence to disprove plaintiffs’ allegations,” the company said.
The lawsuits include claims relating to MTN’s former investment in Irancell, Iran’s second-largest mobile operator.
The plaintiffs allege that MTN’s involvement with Irancell included dealings with entities they claim were linked to Iran’s Islamic Revolutionary Guard Corps, which the US designated as a terrorist organisation in 2019.
They also allege that MTN helped obtain US technology for Irancell and discussed ways of circumventing US sanctions.
MTN disputes the claims.
In rejecting MTN’s request for reconsideration, Judge Amon said the company had not shown that a 2025 ruling by the US Second Circuit Court of Appeals in Ashley v. Deutsche Bank justified revisiting her earlier decisions.
The judge also distinguished the allegations against MTN from cases involving companies accused of providing ordinary commercial services to customers who were later connected to terrorist activity.
The court pointed to allegations concerning MTN’s joint venture with entities that the plaintiffs say were linked to the IRGC, as well as claims involving technology and financial arrangements connected to Irancell.
The Afghanistan claims involve allegations that MTN shut down cell towers at the request of the Taliban and that the shutdowns contributed to attacks.
The court found that the allegations were sufficient for the claims to proceed at this stage. However, the allegations remain to be proven as the litigation continues.
MTN said it expected the evidence produced during discovery to demonstrate that it was not a culpable participant in the attacks referenced in the lawsuits.
“MTN has deep sympathy for those who have been injured or lost loved ones as a result of the conflicts in Iraq and Afghanistan,” the company said.
“MTN continues to believe that the evidence will demonstrate that MTN was not a culpable participant in the attacks at issue.”
The legal cases come as MTN continues to manage financial and operational challenges linked to its former Middle East exposure.
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In its interim results for the six months ended June 30, the company said the escalation of conflict in Iran had affected the performance of Irancell.
MTN recognised its attributable share of a R3.9 billion ($238.4 million) impairment relating to Irancell’s assets during the period.
The company also said US sanctions on Iran’s Central Bank created a secondary-sanctions risk if foreign currency was allocated to an MTN entity to facilitate repayment of receivables or loans.
MTN classified about R2 billion ($122.3 million) of outstanding receivables as non-current because of uncertainty over when sanctions would be lifted and when the amounts could be recovered.
For the Zobay and Long lawsuits, the immediate next step is discovery.
The parties will be able to seek and exchange evidence before potentially asking the court to rule on the cases without a full trial.
MTN said there were no material updates on separate Cabrera and Chand & Davis cases, which also involve allegations connected to its former operations in Afghanistan, Iran and Irancell.
The company continues to dispute the allegations in those cases and said it would consider all available legal options.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
