PUTRAJAYA (Nov 13): JPMorgan and Coutts & Co are no longer part of 1Malaysia Development Bhd’s (1MDB) US$4.77 billion 2021 lawsuit after 1MDB dropped appeals over its civil action against the banks.
This means that the US$4.77 billion lawsuit 1MDB filed against three banks, two companies and two individuals for negligence, breach of contract, breach of fiduciary duties, conspiracy, and dishonest assistance in May 2021, will now proceed with only Deutsche Bank, PetroSaudi International Ltd, PetroSaudi Holdings (Cayman) Ltd, businessman Tarek Obaid, as well as his right-hand man Patrick Mahony.
Mahony's name has also been dropped in this suit but named separately in a separate suit.
The actual claim amounts are US$1.83 billion from Obaid and the PetroSaudi companies, US$1.11 billion from Deutsche Bank, US$800 million from JPMorgan, and US$1.03 billion from Coutts & Co.
In addition, the amendments to 1MDB's suit allowed by the High Court on Wednesday are not related to these amendments but for separate reasons.
1MDB counsel Pang Huey Lynn confirmed the development when contacted by The Edge.
1MDB had accused JPMorgan of dishonestly receiving 1MDB funds sent to PetroSaudi, and Coutts & Co of receiving 1MDB funds sent to Good Star Ltd.
JPMorgan challenged the court’s jurisdiction in 2022, and Coutts & Co did the same in January 2023.
The Kuala Lumpur High Court ruled the suit should have been filed in Switzerland, where both banks are based, not in Malaysia.
1MDB then tried to discontinue its case against them to refile later, but the High Court struck out the notice. When 1MDB refilled an amended writ and requested more time, the court again struck it out, upholding the jurisdiction challenges in early 2024.
The appellate court hearing the appeal had been informed of a proposed settlement by JPMorgan last December and postponed the hearing. In August, JPMorgan paid US$330 million (RM1.4 billion) to the Malaysian government.
Note: This article has been amended to reflect the correct value of the 2021 1MDB lawsuit and to provide clarification on the actual claim amounts and other aspects of the case.
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