Goldman Sachs is set to pay US$500 million to settle a shareholder lawsuit related to the 1Malaysia Development Berhad (1MDB) scandal, according to reports citing the terms of the proposed settlement. The suit was brought by shareholders who accused the bank of making misleading statements about its involvement and about the effectiveness of its risk management practices in connection with 1MDB-related activities.
Multiple outlets describe Goldman’s role in 1MDB bond issuance, including helping the fund raise money through the sale of US$6.5 billion in bonds. The bank is also described as having earned substantial fees from these transactions, with estimates cited at around US$600 million. The lawsuit alleges that Goldman’s disclosures during this period did not match the bank’s actual conduct or the level of risk associated with the transactions.
The settlement amount reflects a resolution of the dispute in the shareholder case. The reports describe the claims and the alleged commercial involvement but do not indicate, in the brief summaries, whether Goldman admits wrongdoing as part of the proposed settlement.
