Shares of the Adani Group rebounded on Friday after U.S. regulators moved to settle a civil fraud lawsuit involving Indian billionaire Gautam Adani and his nephew, Sagar Adani.
Adani Enterprises and Adani Green Energy had initially fallen in early trading following reports of the settlement, but later recovered. Adani Enterprises gained about 1.8 percent, while Adani Green rose 0.6 percent.
Despite the legal developments, both companies remain above their 52-week highs. Data from LSEG showed Adani Enterprises shares have climbed roughly 24 percent this year, while Adani Green has gained about 41 percent.
The U.S. Securities and Exchange Commission (SEC) accused Gautam and Sagar Adani of misleading investors in connection with an alleged bribery and fraud scheme linked to solar power contracts in India.
Under the proposed settlement, Gautam Adani is expected to pay a $6 million penalty, while Sagar Adani will pay $12 million.
In a filing to Indian stock exchanges, Adani Green said both men agreed to the “entry of the final judgment without admitting or denying the allegations made in the civil complaint,” while also consenting to pay the penalties.
The company clarified that it was not directly involved in the case and stated that “no charges have been brought against it.”
The SEC case also involved executives from Azure Power Global and focused on allegations that bribes were paid to secure government solar energy contracts in India.
Reports also suggest the U.S. Department of Justice may withdraw related criminal fraud charges against Gautam Adani.
Back in November 2024, a federal court in New York charged Gautam Adani and seven others over an alleged bribery and fraud operation. Prosecutors claimed the defendants paid more than $250 million in bribes to Indian officials, deceived investors and lenders to secure billions in funding, and obstructed justice.
Although the alleged activities took place in India, the case was filed in Brooklyn because the fundraising activities occurred in the United States.
The Adani Group has consistently denied all allegations, describing them as “baseless.”
According to a New York Times report, Adani’s legal team recently met with officials at the U.S. Justice Department and argued that prosecutors lacked “basic evidence.”
The report also stated that Gautam Adani proposed investing $10 billion in the U.S. economy and creating around 15,000 jobs.
Analysts say the easing of legal pressure could improve the group’s access to international financing and support its expansion in renewable energy and infrastructure projects.
Research firm Deven Choksey Research noted that reducing legal uncertainty may help the conglomerate regain confidence in global capital markets, despite concerns over its debt profile.
The Adani Group, which operates across sectors including ports, power, logistics, and infrastructure, has also faced scrutiny since a 2023 report by short-seller Hindenburg Research accused it of stock manipulation and accounting fraud — allegations the group has repeatedly rejected.
