1Malaysia Development Bhd (1MDB) has withdrawn its appeals against JPMorgan and Coutts & Co, effectively removing the two Swiss banks from its US$1.1 billion (RM5.3 billion) civil suit linked to the multi-billion-dollar financial scandal.
The move follows earlier High Court rulings that the claims against both institutions should have been filed in Switzerland rather than Malaysia, given their jurisdictional bases.
According to The Edge Malaysia, Thursday’s scheduled hearing at the Court of Appeal was cancelled following the withdrawal, meaning the suit — first filed in May 2021 — will now proceed only against Deutsche Bank, PetroSaudi International Ltd, PetroSaudi Holdings (Cayman) Ltd, PetroSaudi founder Tarek Obaid, and his associate Patrick Mahony.
On Wednesday, Judge Raja Ahmad Mohzannuddin granted 1MDB permission to amend its statement of claim in light of the latest developments.
1MDB’s counsel, Pang Huey Lynn, confirmed the matter when contacted by The Edge Malaysia.
1MDB had previously accused JPMorgan of dishonestly receiving funds channeled to PetroSaudi, while Coutts & Co allegedly facilitated transfers from 1MDB to Good Star Ltd.
Both banks challenged the Malaysian court’s jurisdiction — JPMorgan in 2022 and Coutts in early 2023 — leading the High Court to rule that the lawsuits should be pursued in Switzerland, where the banks are incorporated.
Although 1MDB initially sought to discontinue its case with plans to refile later, the court struck out its notice and reaffirmed the jurisdictional ruling in early 2024.
The Court of Appeal had previously been informed of a potential settlement with JPMorgan, which delayed the proceedings.
In August, JPMorgan reached a US$330 million (RM1.4 billion) settlement with the Malaysian government, further reducing the list of defendants in the high-profile case.
