In this news, we discuss the Abu Dhabi’s IPIC drops lawsuit against Goldman Sachs over 1MDB scandal.
(Reuters) – Abu Dhabi’s International Petroleum Investment Co (IPIC) has dropped legal action against Goldman Sachs Group Inc GS.N to recover losses suffered by the US investment bank’s dealings with the state fund Malaysian 1MDB, a court record revealed Tuesday.
The lawsuit alleged that Goldman conspired with unidentified people in Malaysia to bribe his two former leaders – former IPIC chief executive Khadem Abdulla al-Qubaisi and Mohamed Ahmed Badawy al-Husseiny, former CEO of Aabar, a unit of IPIC – to move their business forward at its expense.
Goldman Sachs did not immediately respond to a request for comment from Reuters. Abu Dhabi state fund Mubadala, which controls IPIC, could not be reached immediately for comment.
In September, Malaysia dropped criminal charges against three units of Goldman Sachs after the bank agreed to pay $ 3.9 billion to settle the investigation.
Goldman Sachs had generated around $ 600 million in fees for its work with the Malaysian sovereign wealth fund, which included three bond offerings in 2012 and 2013 that raised $ 6.5 billion.
Report by C Nivedita in Bengaluru; Edited by Anil D’Silva
Original © Thomson Reuters