Wall Street bank to pay US$500m to settle lawsuit linked to corrupt 1MDB

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Shameless Malaysians support this pencuri (thief )/kleptocrat who managed 1MDB as if it is for the corrupt to pilfer/cheat everywhere possible.

Wall Street bank to pay US$500m to settle lawsuit linked to corrupt 1MDB

KUALA LUMPUR, May 22, 2026: Reuters has reported that Goldman Sachs has agreed to pay US$500 million (RM2 billion) to settle a class action lawsuit accusing the Wall Street bank of defrauding shareholders about its work for 1MDB (1Malaysia Development Berhad), a Malaysian sovereign wealth fund (SWF) that became embroiled in a corruption scandal.

The 1MDB scandal was exposed in 2015 following a massive document leak involving about 227,000 files.

While foreign countries have charged financial cheats and thieves, corrupt shameless Malaysians and political parties are lobbying to free their country’s No. 1 pencuri (thief)/kleptocrat, the disgraced and shameless former Umno president and prime minister Najib “1MDB” Razak who is currently serving his jail sentences in Kajang Prison.

 

What an irony! A society that supports thieves and the corrupt!

No News Is Bad News reproduces below the Reuters report as re-posted by FMT:

Goldman Sachs to pay US$500 million to settle shareholder lawsuit over 1MDB scandal

Reuters

Shareholders accused the bank of lying about its role in the fraud while repeatedly touting its supposedly robust risk management.

 

Goldman helped 1MDB sell US$6.5 billion of bonds and collected an estimated US$600 million in fees. (EPA Images pic)

 

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.

“The settlement is an outstanding result for the class,” lawyers for the plaintiffs wrote in the filing.

A judge must approve the settlement.

Neither Goldman Sachs’ lawyers nor a spokesperson for the bank immediately responded to requests for comment.

Former Malaysian Prime Minister Najib Razak set up 1MDB to promote economic development, with help from Malaysian financier Jho Low, who is now a fugitive.

US and Malaysian authorities have said US$4.5 billion was siphoned away from 1MDB, with some diverted to offshore bank accounts and shell companies linked to Low.

Goldman helped 1MDB sell US$6.5 billion of bonds and collected an estimated US$600 million in fees.

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 realized 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.

One Goldman banker was convicted of helping loot 1MDB, and another pleaded guilty.