Goldman Sachs to Pay $500 Million to Settle 1MDB Shareholder Class Action

The Malaysian government established 1Malaysia Development Berhad, or 1MDB, in 2009. Goldman Sachs helped arrange about $6.5 billion in bond offerings in 2012 and 2013, after which billions of dollars were misappropriated, triggering investigations across several countries. Goldman shareholders filed a class action alleging that the bank failed to truthfully disclose its role in the affair and the associated compliance risks, causing investor losses.

Goldman Sachs recently agreed to pay $500 million to settle the securities class action brought by shareholders over the 1MDB scandal. The agreement has been submitted for review to the U.S. District Court for the Southern District of New York, the federal court in Manhattan. As of July 20, 2026, the settlement still requires final approval from a judge to take effect. The scope of compensation and subsequent procedures will be determined by the court.