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Goldman Sachs Officials Reach $79.5 Million Shareholder Settlement Over 1MDB Scandal

Goldman Sachs Group Inc (GS.N) officers and directors reached a $79.5 million settlement to resolve shareholder claims that their poor oversight contributed to the bank being enmeshed in the looting scandal at Malaysia’s 1MDB sovereign wealth fund.

A preliminary settlement of the so-called shareholder derivative lawsuit was filed on Friday in Manhattan federal court, and requires approval by District Judge Vernon Broderick.

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The defendants’ insurers would pay the $79.5 million to Goldman, which would apply it toward compliance and governance measures, including giving more power to its chief compliance officer and creating an anonymous hotline for employee tips.

U.S. prosecutors have said Goldman helped 1MDB arrange $6.5 billion of bond sales, but that $4.5 billion was diverted via bribes and kickbacks to government officials, bankers and others.

Shareholders led by the Atlanta-based Fulton County Employees’ Retirement System sought to hold Goldman Chief Executive David Solomon, his

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