KUALA LUMPUR, Nov 13 — JPMorgan and Coutts & Co have been removed from 1Malaysia Development Bhd’s (1MDB) US$1.1 billion civil suit after the state fund dropped its appeals against the two Swiss banks.
The High Court had earlier ruled that the claims should have been filed in Switzerland rather than Malaysia.
According to The Edge Malaysia, Thursday’s Court of Appeal hearing was cancelled following the decision, meaning the lawsuit 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’s application 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 accused JPMorgan of dishonestly receiving funds channelled to PetroSaudi, while Coutts & Co was alleged to have handled transfers from 1MDB to Good Star Ltd.
Both banks challenged the Malaysian court’s jurisdiction — JPMorgan in 2022 and Coutts in early 2023 — leading to the High Court’s ruling that the case should be pursued in Switzerland, where they are based.
Although 1MDB sought to discontinue its case with the intention of refiling later, the court struck out its notice and later dismissed an amended writ, reaffirming the jurisdictional ruling in early 2024.
The Court of Appeal had previously been informed of a potential settlement with JPMorgan, which led to the postponement of the appeal.
In August, JPMorgan paid US$330 million (RM1.4 billion) to the Malaysian government.
