Ghaffar legal team says investor lawsuit lacks merit
Attorneys for Fahad Ghaffar have issued a response to a recently filed federal demanda accusing him and his brother, Amir Ghaffar, of misleading California investor Michael Tennenbaum into investing $4.4 million in the technology firm Innoveo Inc.
The legal team described the case (3:25-cv-01579-FAB) as “lacking legal merit,” asserting that it is connected to other disputes involving Ghaffar’s former business partner, billionaire investor John Paulson.
“A simple review reveals that the attorneys who filed this lawsuit are the same ones representing John Paulson, and that the allegations lack any legal merit,” said attorneys José Andreu-Fuentes and Alfredo Umpierre-Soler, who represent Ghaffar.
“These appear to have no other purpose than to attempt to influence ongoing judicial proceedings both in Puerto Rico and in the city of New York, in most of which Fahad Ghaffar has prevailed,” they said.
“This reaffirms the strength of his legal position and the responsible manner in which he has conducted all of his business endeavors,” their statement said.
The response comes days after the filing of a 31-page complaint by Tennenbaum, through his Estancias Twelve Trust, in the U.S. District Court for the District of Puerto Rico. The complaint alleges that the Ghaffar brothers “knowingly and fraudulently induced” him to invest in Innoveo by presenting it as a “cutting-edge software firm poised for market disruption.”
The lawsuit claims the pair misrepresented the company’s financial condition and technology and diverted funds through related entities.
Ghaffar’s attorneys rejected the allegations, maintaining that their client has acted lawfully and responsibly.
The dispute adds to a growing list of courtroom battles involving Ghaffar, who has been engaged in a business separation from Paulson Puerto Rico. In an earlier, unrelated case, Paulson alleged self-dealing and mismanagement in ventures jointly operated with Ghaffar — allegations that remain under litigation.
According to the court docket, the Ghaffar brothers have not yet filed their official response to the complaint, but their attorneys’ statement indicates they intend to challenge both the allegations and the motives behind the case.
The lawsuit remains pending before Senior Judge Francisco A. Besosa in federal court in San Juan.
