DBS sued for US$1 billion in 1MDB-linked claim

SINGAPORE: Liquidators of four companies linked to recovery efforts in the multibillion-dollar 1MDB scandal have sued DBS Bank, seeking an estimated S$1.298 billion ($1.03 billion) in damages, Southeast Asia's largest lender DBS said on Wednesday (Sep 9).

The claimants include the liquidators of four companies: Blackrock Commodities (Global), Platinum Global Luxury Services, Affinity Equity International Partners and TKIL Global Investments. The liquidators did not immediately respond to Reuters requests for comment.

Malaysian state fund 1MDB, or 1Malaysia Development Berhad, co-founded by then Prime Minister Najib Razak in 2009, was at the heart of a global corruption scandal in which US authorities said at least US$4.5 billion was misappropriated, sparking investigations and asset-recovery efforts worldwide.

At the time, there was no claim against DBS, according to the lender's statement.

DBS rejected the claim and said it would fight it vigorously, adding that the company has made no provision for the lawsuit.