Goldman Sachs to pay $500 million to settle shareholder lawsuit over 1MDB scandal | Law-Order
Goldman Sachs will pay $500 million to settle a class action lawsuit regarding its involvement in the 1MDB corruption scandal.Summary
Goldman Sachs has agreed to a $500 million settlement to resolve a class action lawsuit alleging the bank defrauded shareholders concerning its role in the 1MDB scandal. The lawsuit, led by the Swedish pension fund Sjunde AP-Fonden, claims the bank misled investors about its involvement with the Malaysian sovereign wealth fund and its risk management practices, leading to a drop in share price when the fraud was revealed.
The 1MDB scandal involved the siphoning of approximately $4.5 billion from the fund, which was established by former Malaysian Prime Minister Najib Razak and financier Jho Low. Goldman Sachs facilitated $6.5 billion in bond sales for 1MDB, earning roughly $600 million in fees. This new settlement follows a previous 2020 agreement where the bank paid $2.9 billion in penalties to settle probes by the U.S. Justice Department and other authorities.
While a Manhattan federal court judge must still formally approve the settlement, the agreement marks a significant chapter in the legal fallout from the scandal. Previously, one Goldman banker was convicted of assisting in the looting of 1MDB, and the bank recently completed a three-year deferred prosecution agreement related to the matter.
(Source：Devdiscourse)