NEW YORK: Goldman Sachs has agreed to pay US$500 million (S$639.6 million) to settle a class action lawsuit linked to its work for 1MDB, the Malaysian sovereign wealth fund embroiled in a corruption scandal.
The settlement amount was disclosed on Wednesday in a filing in Manhattan federal court by lawyers representing shareholders led by Swedish pension fund Sjunde AP-Fonden.
The parties had informed the court last month that they had agreed to settle the lawsuit, although the terms were not disclosed at the time.
Lawyers for the plaintiffs described the agreement as “an outstanding result for the class” in the court filing.
A judge must still approve the settlement before it can take effect.
Neither Goldman Sachs’ lawyers nor a spokesperson for the bank immediately responded to requests for comment.
Former Malaysian Prime Minister Datuk Seri Najib Razak established 1MDB to promote economic development with the help of Malaysian financier Jho Low, who remains a fugitive.
