1MDB has proposal for settlement with Deutsche Bank in US$1.1 billion suit

Malaysia’s scandal-hit state fund 1Malaysia Development Berhad (1MDB) has a proposal for settlement with Deutsche Bank in a US$1.1 billion (S$1.4 billion) lawsuit, marking the latest resolution in the country’s long-running effort to recover money linked to the multibillion-dollar fraud.

Malaysia’s High Court has been informed of the proposal, 1MDB lawyer Lim Chee Wee said on Oct 12 during a separate hearing at the country’s top court in Putrajaya.

A hearing in the Deutsche Bank case is scheduled for Oct 26.

“We continue to feel strongly about our position in the case, which is supported by our particular fact pattern that is differentiated from other defendants, as well as recent developments in ongoing similar cases involving other parties,” said a spokesperson for Deutsche Bank.

“Any potential settlement would need to take this into account,” the spokesperson said.

A settlement would resolve another piece of the legal fallout from 1MDB even as claims against major banks continue years after billions of dollars were allegedly siphoned from the fund.

1MDB started proceedings in Malaysia against Deutsche Bank’s local unit in 2021, claiming damages of US$1.1 billion excluding interest, based on three wire transfers carried out by the unit in 2009 and 2011, according to the lender’s 2025 annual report.

It added that a full trial was scheduled for October and December 2026, while not disclosing if it has made any provisions for the matter as this could seriously prejudice the outcome.

Malaysia still faces 51.4 billion ringgit (S$16.1 billion) in financial obligations tied to the scandal, while recovery efforts have brought in 31.3 billion ringgit, according to the government.

JPMorgan Chase & Co agreed in 2025 to pay 1.4 billion ringgit in another settlement related to 1MDB.
BLOOMBERG, REUTERS