Zia Chishti loses appeal as U.S. court upholds dismissal of defamation lawsuit

A U.S. federal appeals court affirmed the order dismissing the defamation lawsuit filed by former TRG Pakistan CEO Zia Chishti’s against former Afiniti employee Tatiana Spottiswoode and her lawyers, concluding that all of his claims fail as a matter of law. The dispute arose after Spottiswoode testified before a U.S. Congressional committee in 2021 regarding a 2019 arbitration award that found in her favour on claims arising from allegations of sexual harassment, assault and battery against Chishti. The hearing ultimately led to U.S. legislation ending mandatory arbitration of workplace sexual assault and sexual harassment claims. Chishti subsequently sued, alleging that her congressional testimony, subsequent media interviews and related public statements defamed him and violated confidentiality obligations arising from the arbitration. In September 2024, the U.S. District Court for the District of Columbia dismissed the lawsuit, describing it as “a not-so-thinly veiled attempt to undo the outcome of an arbitration that rejected Chishti’s account of events and ruled in Spottiswoode’s favour.” The U.S. Court of Appeals for the District of Columbia Circuit has now affirmed that dismissal with prejudice, rejecting all claims arising from Spottiswoode’s congressional testimony, subsequent media interviews, social media posts and related conduct. The court held that Spottiswoode’s testimony before Congress was protected by an absolute legislative privilege because it was given pursuant to a congressional subpoena in connection with pending legislation. It further ruled that statements made by Spottiswoode and her attorney to The Telegraph, as well as related social media posts, were protected expressions of opinion, making them non-actionable under District of Columbia law. The ruling undercuts claims made by Chishti in early 2025 that a settlement agreement with The Telegraph over its reporting of the scandal vindicated his position that the findings against him were wrong. The decision adds to a series of recent setbacks for Chishti in the United States. In recent months, the United States District Court for the Southern District of New York ruled that several claims pursued by Chishti against TRG entities had already been released under a 2022 settlement agreement. In separate enforcement proceedings, the same court ordered him to turn over assets to satisfy an arbitration award and found that transfers of assets to his spouse had been made with actual intent to hinder, delay or defraud creditors.