Malaysian investment fund 1MDB sues global firms in effort to recoup US$23 billion
- 1MDB filed six suits against nine entities and 25 individuals for various wrongdoings, including fraud and conspiracy to defraud the fund
- Malaysian authorities are trying to track down money that was siphoned off from the troubled economic development fund
Malaysian state-owned investment fund 1MDB and a former unit have filed a combined 22 civil suits against entities and individuals for the recovery of assets worth more than US$23 billion.
1MDB, whose full name is 1Malaysia Development Berhad, filed six suits against nine entities, including two foreign financial institutions, and 25 individuals for various wrongdoings, including fraud and conspiracy to defraud the fund, the Finance Ministry said in a statement on Monday.
SRC International Sdn filed 16 suits against 15 individuals and eight entities for various wrongdoings, including abuse of power and breach of fiduciary duties in public office, the ministry said without identifying those being sued.
The move adds to the growing fallout from the 1MDB scandal that has spurred court cases around the world as Malaysian authorities try to track down money that was siphoned off from the troubled economic development fund.
In March, Deloitte PLT agreed to a 324-million ringgit (US$80 million) settlement with the Malaysian government to resolve all claims related to the firm’s audit of 1MDB and SRC between 2011-2014. The deal also came less than a week after Malaysian lender AMMB Holdings Bhd. agreed to a US$699 million settlement over its role in dealings linked to 1MDB.