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Malaysia's 1MDB in settlement talks with Deutsche Bank, report says - Finance news and analysis from Global Banking & Finance Review
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Malaysia's 1MDB in settlement talks with Deutsche Bank, report says

Published by Global Banking & Finance Review

Posted on October 12, 2026

2 min read

· Last updated: October 12, 2026

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Malaysia's 1MDB Engages Deutsche Bank in Legal Settlement Discussions

Legal Dispute and Settlement Negotiations Overview

Background of the 1MDB Scandal

KUALA LUMPUR, Oct 12 (Reuters) - Malaysia's state fund 1MDB is in talks to settle a legal dispute with Deutsche Bank, local media reported on Monday, as the country continues its efforts to recover billions of dollars in alleged losses from a corruption scandal. 

Allegations and Financial Impact

• US prosecutors have alleged that at least $4.5 billion was stolen from 1Malaysia Development Berhad (1MDB), co-founded by former Malaysian Prime Minister Najib Razak, in a complex, globe-spanning scheme by high-level officials and their associates from 2009 to 2014. Malaysia has said billions more remain unaccounted for.

Legal Actions Against Deutsche Bank

1MDB's Lawsuit and Deutsche Bank's Response

• In 2021, 1MDB sued Deutsche and several other financial organisations to recover billions in assets that it said it were linked to misconduct related in the scandal. Deutsche said at the time that it was "not aware of any basis for a legitimate claim against Deutsche Bank."

Settlement Talks and Court Proceedings

Details of the Proposed Settlement

• Lim Chee Wee, a lawyer for 1MDB, told a court in a separate case on Monday that the fund was in talks with Deutsche on a proposed settlement, The Edge financial newspaper reported, without providing details of the dispute.

Communication with the High Court

• Lim said he had already passed on details about the talks to the Kuala Lumpur High Court, according to the report.

Upcoming Court Dates

• Malaysia's court website showed that the court was scheduled to hear 1MDB's lawsuit against Deutsche and others on October 26.

Comments from Involved Parties

• Lim declined to comment when contacted by Reuters. Deutsche also declined to comment.

(Reporting by Rozanna Latiff; Editing by David Stanway)

Key Takeaways

  • 1MDB is pursuing a claim of around US$1.11 billion against Deutsche Bank (Malaysia) over alleged breach of contract, negligence or dishonest assistance in three wire transfers in 2009–2011 (investor-relations.db.com).
  • Court rejected Deutsche Bank’s summary dismissal on statute‑of‑limitations grounds; the case is slated for full trial in October and December 2026 (sec.gov).
  • Malaysia’s broader asset‑recovery campaign continues: since 2018, the government has recovered substantial sums—including RM1.4 billion from JPMorgan in August 2025 and over RM31 billion in total—yet still faces roughly RM20 billion in net losses (channelnewsasia.com).

References

Frequently Asked Questions

What is the legal dispute between 1MDB and Deutsche Bank about?
The dispute involves Malaysia's state fund 1MDB suing Deutsche Bank and other financial organizations to recover billions in assets alleged to be linked to the 1MDB corruption scandal.
How much money is alleged to have been stolen from 1MDB?
US prosecutors have alleged that at least $4.5 billion was stolen from 1MDB in a complex scheme involving high-level officials and their associates.
Are settlement talks between 1MDB and Deutsche Bank confirmed?
Yes, a lawyer for 1MDB confirmed in court that the fund is in talks with Deutsche Bank on a proposed settlement.
When is the next court hearing for the 1MDB lawsuit against Deutsche Bank?
According to Malaysia's court website, the next hearing is scheduled for October 26.
What has Deutsche Bank's response been to the lawsuit?
Deutsche Bank has stated previously that it was not aware of any basis for a legitimate claim against it and declined to comment further on the matter.

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