Mota-Engil nears win in US Muddy Waters case

Mota-Engil is close to defeating a defamation lawsuit brought in the United States by Muddy Waters, after a Texas judge recommended that the case be dismissed for lack of jurisdiction, according to court documents reviewed by ECO. The decision could end the dispute without a trial or settlement for the Portuguese construction group and its chief executive.

The case was filed about six months ago by Muddy Waters against Mota-Engil and CEO Carlos Mota Santos. Lawyers for the company and its chief executive asked the court to throw out the claim on three grounds, including lack of jurisdiction. In an assessment dated June 25, judge Dustin M. Howell agreed with that argument, saying Muddy Waters had not shown the required link between the defendants’ contacts in Texas and the alleged claim.

Howell said that although Muddy Waters is based in Austin, that alone was not enough for a Texas court to hear the case. According to the recommendation, the claimant failed to show a stronger connection between the dispute and the state or that the alleged harm was suffered there. Because of that finding, the judge did not examine the other arguments raised by Mota-Engil and Mota Santos.

The lawsuit stemmed from comments made by Carlos Mota Santos in a December 2024 interview with Expresso, in which he described the fund’s bet against Mota-Engil shares as “market manipulation” and called for tighter regulation, while also saying the matter had been reported to Portugal’s securities regulator, the CMVM. Muddy Waters, known for short selling shares and taking an aggressive stance as a shareholder, filed the action in December 2025 alleging defamation and reputational damage.

The final decision now rests with the presiding judge, Robert Pitman, who referred the matter to Howell under the court’s procedures. If Pitman follows that recommendation, the case will end in its current form, although Muddy Waters could still try to refile it in another court.

Originally published at Eco.pt