Partly Cloudy
21°CWed :Clear. High: 27 Low: 16

Rajat Gupta’s plea against business partner dismissed by court

Rajat Gupta's plea against business partner dismissed by court

New York: A US court here has dismissed a breach of contract lawsuit filed by former Goldman Sachs director Rajat Gupta against his long time friend and business associate Parag Saxena, saying the claims made by him in the complaint are no longer relevant.

US District Judge George Daniels said in a December 3 order that New Silk Route CEO Saxena’s “motion to dismiss is granted and the action is dismissed as moot. Accordingly the case is closed.”

During a hearing in Manhattan federal court, Daniels said, “I have a dim view of the merits of this claim.”

The judge said since Gupta had a representative on the company board, that left the original complaint moot.

Gupta’s lawyer Rishi Bhandari said suit was filed in order to ensure that there was a designee on the board.

“If they do anything to impair Gupta’s rights, we can still sue to stop them,” Bhandari added.

India-born Gupta, convicted last year on insider trading charges, had in March this year filed a breach-of-contract lawsuit against Saxena.

Gupta and Saxena had co-founded the private equity firm New Silk Route (NSR) in 2006.

The billion dollar plus investment entreprise focused on South Asia and the Middle East.

At the beginning of 2012, the two were the sole directors of the company and in February last year, while securities fraud charges against Gupta were pending, Saxena had requested that Gupta distance himself from NSR.

Gupta transferred his voting shares to NSR and executed the voting agreement according to which Gupta voluntarily stepped down from NSR’s board of directors and designated NSR manager Anil Sood as his replacement.

However, Gupta claimed in his lawsuit that Saxena was in breach of the voting agreement after he “improperly” sought to remove his designee Sood and refused to permit the firm to acquire directors and officers’ insurance.

While Sood was forced to step down from the board, Greg Orman was appointed in his place.

Saxena had filed a memorandum in the case earlier this year saying that the litigation was “nothing more than a crude attempt by convicted felon Rajat Gupta to burden an investment partnership with a frivolous lawsuit” while trying to “extract a buyout to defray tens of millions of dollars in liabilities that he has incurred from his criminal proceedings.”

Gupta, among the most high-profile Wall Street executives to be charged with insider trading, was sentenced to two years in prison after being convicted of passing confidential boardroom information to hedge fund founder Raj Rajaratnam and is currently free on bail pending an appeal.

 

Top Stories

INDIA-ECONOMY-BANK-RATE

RBI wants Sebi to bar ‘wilful’ defaulters from capital mkts

July-30-2014
New Delhi : Tightening the regulatory noose around wilful defaulters of bank loans, RBI has suggested to watchdog Securities and Exchange Board
29300970.cms

Sensex down 30 points in early trade; L&T plunges 8%, Airtel gains 4.5% on quarterly results

July-30-2014
The benchmark BSE Sensex fell 30 points in early trade today on selling by funds and retail investors ahead of monthly expiry
f89df75d-e78c-43c1-b547-c607218a4977.img

India’s Tata Group earmarks $35bn for global expansion plan

July-30-2014
High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the
prakash-nanjappa-cwg

Shooters, wrestlers inspire India’s medal rush in Commonwealth Games

July-30-2014
Glasgow: Shooters and wrestlers put on a stunning show as India grabbed nine medals, including three gold medals, in what was their
10012-1996-140729-rMBP_Update-l

Apple rolls out updated Retina MacBook Pros with faster Haswell chips

July-30-2014
Apple released the updated MacBook Pro line just in time before school season starts. The 13-inch entry level model is still $1,299
Birendra_Singh_Amit_Shah_360

Congress MP Meets Amit Shah, Alarms His Party in Haryana

July-30-2014
New Delhi: When Rajya Sabha MP Birendra Singh met BJP president Amit Shah on Tuesday, it underscored the growing troubles of the