How the Goldman Sachs 1MDB case unfolded

Goldman and Malaysia reportedly agree in principle on a 3.9 billion dollar settlement

Settlement agreement signed

Settlement agreement between Goldman Sachs and the Government of Malaysia. According to Malay Mail, a settlement valued at 3.9 billion dollars, made up of a 2.5 billion dollar cash payment and a guarantee that Malaysia would receive at least 1.4 billion dollars in assets linked to the 1MDB bonds, resolving the criminal proceedings in Malaysia. Goldman's filings describe the agreement and the 1.4 billion dollar guarantee.

Malaysian charges withdrawn and entities acquitted

Withdrawal of charges against three Goldman Sachs entities (as reported). Prosecutors withdrew all 12 charges under the Capital Markets and Services Act 2007 against Goldman Sachs International, Goldman Sachs (Asia) LLC and Goldman Sachs (Singapore) Pte, and the court granted a discharge amounting to acquittal.

US deferred prosecution agreement and subsidiary guilty plea

Deferred prosecution agreement (The Goldman Sachs Group, Inc.) and guilty plea (Goldman Sachs (Malaysia) Sdn. Bhd.). The parent was charged by information with conspiracy to violate the FCPA anti-bribery provisions and entered a deferred prosecution agreement. The Malaysian subsidiary pleaded guilty to one count of the same conspiracy. Goldman agreed to pay over 2.9 billion dollars in a coordinated resolution, with the Department crediting over 1.6 billion dollars paid to foreign authorities. Goldman admitted its control functions did not take reasonable steps to ensure Jho Low was not involved.

Goldman files arbitration claim against Malaysia

Arbitration claim by Goldman Sachs against the Government of Malaysia (as reported). Goldman began arbitration over Malaysia's approach to recovering and crediting assets under the guarantee in the 18 August 2020 settlement agreement. Al Jazeera described the initial dispute as concerning a 250 million dollar interim payment tied to whether Malaysia had recovered at least 500 million dollars in assets by August 2022. Malaysia's finance ministry named the forum as the London Court of International Arbitration and gave the filing date.

US charge against the parent dismissed

Dismissal of the charge against The Goldman Sachs Group, Inc.. The charge was dismissed after the three year deferred prosecution agreement, which expired in October 2023. Goldman's 10-Q says the dismissal was in accordance with the agreement. Reuters reported that Chief Judge Margo Brodie dismissed it and that Goldman did not oppose dismissal.

Malaysia's finance ministry says the arbitration is ongoing

Statement on 1MDB recoveries (as reported by The Edge Malaysia). The ministry said the arbitration with Goldman was ongoing, handled by the Attorney General's Chambers with UK King's Counsel, and that because of confidentiality terms no further details could be disclosed.

Shareholder class action plaintiffs move for preliminary approval of a settlement, according to Goldman

Goldman's 10-Q describes the arbitration as ongoing and Malaysia's August 2025 demand for about 1 billion dollars

Quarterly report for the period ended 30 June 2026, guarantees and legal proceedings notes. Goldman states that the guarantee required Malaysia to receive at least 1.4 billion dollars by August 2025, that the arbitration is ongoing, that Malaysia demanded a final payment of about 1 billion dollars in August 2025, that Goldman believes Malaysia has recovered more than 1.4 billion dollars in creditable assets and that no payment should be required, and that final determinations will be made through the arbitral process. It also states that the parent's charge was dismissed on 6 May 2024 and that GS Malaysia was sentenced on 9 June 2021.