Kuala Lumpur:1Malaysia Development Berhad (1MDB) is negotiating with Deutsche Bank (Malaysia) Berhad to resolve a legal suit it filed against the bank.

According to BERNAMA News Agency, the settlement discussions were revealed by 1MDB's legal representative, Datuk Lim Chee Wee, to the Federal Court. The court session was presided over by a three-member panel, including Chief Judge of Malaya Datuk Seri Hashim Hamzah, Chief Judge of Sabah and Sarawak Datuk Seri Azizah Nawawi, and Federal Court Judge Datuk Ravinthran N. Paramaguru.

During the proceedings, it was mentioned that the proposed settlement had already been communicated to the High Court. The next hearing regarding the case is set for October 26 before High Court Judicial Commissioner Rihada Rafie. However, the specific terms of the settlement have not been made public.

1MDB originally filed a lawsuit on May 7, 2021, seeking $1.83 billion against seven defendants, alleging breach of contract, negligence, and criminal conspiracy in the mishandling of its funds. The defendants included Deutsche Bank (Malaysia) Berhad, Coutts and Co, J.P. Morgan (Switzerland), Petrosaudi International, Petrosaudi Holdings (Cayman), Tarik Obaid, and Patrick Mahony. The company accused them of conspiring to defraud 1MDB and providing dishonest assistance that led to financial losses and reputational damage.

In November of last year, 1MDB dropped JPMorgan and Coutts and Co from the lawsuit. In a related matter, 1MDB is seeking permission to appeal to the Federal Court following a ruling by the Court of Appeal in favor of UK law firm White and Case LLP, which argued that the Malaysian High Court lacked jurisdiction over the case. The Federal Court has allowed 1MDB to include additional documents to support its appeal.

The original lawsuit, filed in the Kuala Lumpur High Court in 2024, seeks $1.83 billion and $33 million in damages from White and Case and Mahony, alleging that the law firm aided PetroSaudi in fraudulent activities against 1MDB. The High Court had previously ruled it could hear the case, as the witnesses were in Malaysia, but this decision was overturned by the Court of Appeal.