Goldman Sachs Group agreed to pay $500 million to settle a long-standing shareholder class-action lawsuit. This legal action stems from the bank's involvement in the 1Malaysia Development Berhad (1MDB) corruption scandal.
Lead plaintiffs, including the Swedish pension fund Sjunde AP-Fonden, disclosed the terms in a legal filing. Plaintiffs submitted the document to Manhattan federal court. The lawsuit alleged Goldman Sachs deceived investors regarding its risk management practices.
The bank reportedly collected massive fees from illicit bond transactions. These transactions involved multi-billion dollar deals. This settlement concludes eight years of legal disputes.
It follows a $2.9 billion criminal settlement reached with the U.S. Department of Justice. The parties finalized that prior agreement in 2020.