1MDB in Talks to Settle Lawsuit Against Deutsche Bank

Malaysia’s state investment fund, 1Malaysia Development Berhad (1MDB), is in discussions with Deutsche Bank (Malaysia) Berhad to settle a lawsuit linked to alleged misconduct involving the fund’s money.

The negotiations were disclosed at the Federal Court on October 12, when 1MDB’s lawyer, Datuk Lim Chee Wee, informed judges that a proposed settlement was being discussed. The terms of the agreement have not been made public.

Proposed Settlement Could Advance 1MDB’s Long-Running Legal Disputes

The lawsuit was filed on May 7, 2021, against seven defendants, including Deutsche Bank, Coutts & Co, JPMorgan (Switzerland), PetroSaudi International, PetroSaudi Holdings, Tarik Obaid and Patrick Mahony.

1MDB alleged breach of contract, negligence and criminal conspiracy relating to the misappropriation of its funds. The claims remain allegations unless established through legal proceedings.

The disclosure came during a separate Federal Court proceeding involving 1MDB’s application for permission to appeal a decision in favour of British law firm White & Case LLP.

Lim told the court that the Deutsche Bank matter was scheduled for a High Court hearing on October 26. Any settlement could help resolve one part of 1MDB’s wider efforts to pursue legal claims and recover funds connected to the scandal.