1MDB seeks to settle lawsuit with Deutsche Bank

Sovereign wealth fund 1MDB is in talks with Deutsche Bank (Malaysia) Berhad to settle a lawsuit filed against the bank.

Its counsel, Lim Chee Wee, informed the Federal Court of the settlement talks during proceedings today before a three-member panel led by Chief Judge of Malaya Hashim Hamzah.

The panel, comprising Chief Judge of Sabah and Sarawak Azizah Nawawi and Federal Court judge Ravinthran N Paramaguru, was...

Sovereign wealth fund 1MDB is in talks with Deutsche Bank (Malaysia) Berhad to settle a lawsuit filed against the bank.

Its counsel, Lim Chee Wee, informed the Federal Court of the settlement talks during proceedings today before a three-member panel led by Chief Judge of Malaya Hashim Hamzah.

The panel, comprising Chief Judge of Sabah and Sarawak Azizah Nawawi and Federal Court judge Ravinthran N Paramaguru, was hearing 1MDB’s application for leave to appeal against a decision in favour of UK law firm White & Case LLP.

“We have already informed the High Court that there is a proposed settlement between our client (1MDB) and Deutsche Bank. The hearing for that case is scheduled for Oct 26 before High Court judicial commissioner Rihada Rafie,” Lim (below) said.

However, the terms of the proposed settlement were not disclosed.

On May 7, 2021, 1MDB filed a US$1.83 billion suit against seven defendants, alleging breach of contract, negligence and criminal conspiracy in the misappropriation of its funds.

1MDB named Deutsche Bank (Malaysia) Berhad, Coutts & Co, J.P. Morgan (Switzerland), Petrosaudi International, Petrosaudi Holdings (Cayman), Tarik Obaid and Patrick Mahony as the first to seventh defendants.

The plaintiff alleged that all the defendants conspired to defraud 1MDB and provided dishonest assistance causing losses to the company as well as damaging 1MDB's reputation and good name.

However, on Nov 13 last year, 1MDB had dropped JPMorgan and Coutts and Co from the suit.

Additional documents

Meanwhile, on 1MDB’s application for leave to appeal to the Federal Court, counsel Cyrus Das, representing White & Case, told the panel that he objected to 1MDB’s application to include more than 3,000 pages of additional documents in support of its leave application.

Another counsel for 1MDB, Khoo Guan Huat, informed the court that the issue had been raised during case management before the Federal Court last week.

The panel then allowed 1MDB’s application to include the additional documents and directed that affidavits be filed. The court also ordered that case management be held today to fix an early hearing date for the application.

On Aug 20, this year, the Court of Appeal granted an appeal by White & Case LLP against a High Court decision that allowed a lawsuit filed by 1MDB on alleged fraud to be heard in Malaysia, ruling that the High Court lacked the jurisdiction to hear 1MDB’s suit against the firm.

1MDB filed the suit in the Kuala Lumpur High Court in 2024, seeking US$1.83 billion and US$33 million in losses from White & Case and Mahony. The fund alleged that White & Case assisted PetroSaudi in committing fraud and conspired to harm 1MDB while acting as its legal counsel.

Last year, the High Court rejected White & Case’s challenge, ruling that it could hear the lawsuit because the trial witnesses are located in Malaysia.

- Bernama