Article ID: f77059b1ae0a8d6125bfbf8eb955061ef8d2e420ba423073401358253a2f5024
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URL: https://www.businessinsurance.com/goldman-sachs-to-pay-500-million-to-settle-shareholder-lawsuit/
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Goldman Sachs to pay $500 million to settle shareholder lawsuit - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Goldman Sachs to pay $500 million to settle shareholder lawsuit D&O , Risk Management May 22, 2026 (Reuters) – Goldman Sachs has agreed to pay $500 million to settle a class action lawsuit accusing the Wall Street bank of defrauding shareholders about its work for 1MDB, a Malaysian sovereign wealth fund that became embroiled in a corruption scandal. The parties said last month they had agreed to settle, but the terms were not disclosed. Lawyers for the shareholders, led by Swedish pension fund Sjunde AP-Fonden, disclosed the amount in a Wednesday filing in Manhattan federal court. “The settlement is an outstanding result for the class,” lawyers for the plaintiffs wrote in the filing. A judge must approve the settlement. Neither Goldman Sachs’ lawyers nor a spokesperson for the bank immediately responded to requests for comment. Former Malaysian Prime Minister Najib Razak set up 1MDB to promote economic development, with help from Malaysian financier Jho Low, who is now a fugitive. U.S. and Malaysian authorities have said $4.5 billion was siphoned away from 1MDB, with some diverted to offshore bank accounts and shell companies linked to Low. Goldman helped 1MDB sell $6.5 billion of bonds and collected an estimated $600 million in fees. Shareholders accused the bank of lying about its role in the fraud while repeatedly touting its supposedly robust risk management. They said Goldman’s share price tumbled after investors realized Goldman “actively facilitated – and handsomely profited from” the fraud. Goldman agreed in 2020 to pay $2.9 billion in penalties and have a Malaysian unit admit criminal wrongdoing to settle 1MDB probes by the U.S. Justice Department and other authorities. A Brooklyn, New York, judge formally ended the U.S. criminal case against Goldman in May 2024, after the bank completed a three-year deferred prosecution agreement. One Goldman banker was convicted of helping loot 1MDB, and another pleaded guilty. 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