A payment of $500 million to settle a class-action lawsuit accusing Goldman Sachs of defrauding 1MDB shareholders.
Goldman helped 1MDB sell US $6.5 billion of bonds and collected an estimated US $600 million in fees. Add CNA as a trusted source to help Google better understand and surface our content in search results.
NEW YORK: Goldman Sachs has agreed to pay US$500 million to settle a class action lawsuit accusing the Wall Street bank of defrauding shareholders about its work for 1MDB, a Malaysian sovereign wealth fund that became embroiled in a corruption scandal. The parties said last month they had agreed to settle, but terms were not disclosed at the time.
Lawyers for the shareholders, led by Swedish pension fund Sjunde AP-Fonden, disclosed the amount in a Wednesday filing in Manhattan federal court. US and Malaysian authorities have said US$4.5 billion was siphoned from 1MDB, with some diverted to offshore bank accounts and shell companies linked to Low. Shareholders accused the bank of lying about its role in the fraud while repeatedly touting its supposedly robust risk management.
They said Goldman's share price tumbled after investors realised Goldman"actively facilitated - and handsomely profited from" the fraud. Goldman agreed in 2020 to pay US$2.9 billion in penalties and have a Malaysian unit admit criminal wrongdoing to settle 1MDB probes by the US Justice Department and other authorities. A Brooklyn, New York, judge formally ended the US criminal case against Goldman in May 2024, after the bank completed a three-year deferred prosecution agreement.
Fugitive Malaysian financier Jho Low seeks Trump pardon for 1MDB case: Reports
Goldman Sachs 1MDB Malaysian Sovereign Wealth Fund Fraud Class Action Lawsuit Settlement Penalties Defrauding Shareholders Allegations Role Fraudulent Activities Accounting Fraud $4.5 Billion $6.5 Billion $600 Million $500 Million $2.9 Billion Jho Low Malaysian Authorities Malaysia Malaysian Laws Trump Pardon 1MDB Probes
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