Swedish pension fund to face Goldman Sachs in court for misleading investors

A Swedish pension fund will control a class action against Goldman Sachs Group Inc. over the 1Malaysia Development Berhad (1MDB) scandal, a federal judge in New York ruled.
Photo: Richard Drew/AP/Ritzau Scanpix/AP / AP
Photo: Richard Drew/AP/Ritzau Scanpix/AP / AP

Sjunde AP-Fonden (AP7) was named on Thursday as lead plantiff in the suit, which accuses the bank of misleading investors about its work with the Malaysian state fund. The law firm Kessler Topaz Meltzer & Check LLP was named as lead counsel.

U.S. District Judge Vernon S. Broderick’s ruling means that Sjunde AP-Fonden’s legal team will map strategy, oversee legal motions, manage settlement talks and divvy up the work among collaborating firms. They stand to collect the most in fees in the event of a settlement or a verdict favorable to them.

Shareholders sued Goldman Sachs in December, accusing it of misleading them about the firm’s work with 1MDB, for which the bank arranged  USD 6.5bn in bond sales. The investors seek unspecified damages. The firm has denied culpability in the scandal and laid the blame on Tim Leissner, a former partner who has pleaded guilty.

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