1MDB reaches settlement with Deutsche Bank in US$1.1 billion lawsuit
Claims against major banks continue years after billions of dollars were allegedly siphoned
MALAYSIA’S scandal-hit state fund 1Malaysia Development Bhd. has reached a proposed settlement with Deutsche Bank in a US$1.1 billion lawsuit, marking the latest resolution in the country’s long-running effort to recover money linked to the multibillion-dollar fraud.
Malaysia’s High Court has been informed of the proposed settlement, 1MDB lawyer Lim Chee Wee said on Monday (Oct 12) during a separate hearing at the country’s top court in Putrajaya. A hearing in the Deutsche Bank case is scheduled for Oct 26.
The agreement would resolve another piece of the legal fallout from 1MDB even as claims against major banks continue years after billions of dollars were allegedly siphoned from the fund.
Malaysia still faces RM51.4 billion (US$12.6 billion) in financial obligations tied to the scandal, while recovery efforts have brought in RM31.3 billion, according to the government. JPMorgan Chase & Co agreed last year to pay RM1.4 billion in another settlement related to 1MDB. BLOOMBERG
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