MANHATTAN: Goldman Sachs Group Inc. said it reached an “agreement in principle” to settle a shareholder class action claiming the bank and former top executives misled them about its involvement in the 1MDB scandal.
Lawyers from both Goldman and Swedish pension fund Sjunde AP-Fonden, the lead plaintiff in the case, said in a Wednesday letter to US district judge Vernon S. Broderick in Manhattan that they’ve agreed to resolve the case “in its entirety”, without providing details of the resolution. They said they plan to file the settlement agreement by May 20. Broderick must approve the deal for it to go forward.
Goldman declined comment.
The suit was first filed in 2018. The bank denied liability at the time but later agreed to pay more than US$2.9 billion, the largest penalty of its kind in US history, and more than US$5 billion globally for its role in the scheme. Two Goldman bankers were convicted of helping to loot 1MDB.