Goldman Sachs Group Inc (GS.N) officers and directors have agreed to pay $79.5 million to settle shareholder allegations that their inadequate management led to the bank’s involvement in Malaysia’s 1MDB sovereign wealth fund looting crisis.
On April 8, former Goldman banker Roger Ng was convicted in Brooklyn, New York on bribery and money laundering charges over his role in the scandal.
US prosecutors say Goldman helped arrange $6.5 billion of bond sales for the Malaysian state investment fund, but that $4.5bn was diverted via bribes and kickbacks.
None of the defendants admitted wrongdoing or liability in agreeing to settle. It is the second-largest shareholder derivative settlement in the federal court circuit that includes New York.
The lawyers plan to seek fees of up to 25 percent of the settlement amount, or about $19.9 million, which Goldman would pay.
This report’s information was first seen on reuters.com; to read more, click this link.
