1MDB scandal: Goldman Sachs officials reach US$79.5 mln shareholder settlement

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.

NEW YORK: Goldman Sachs Group Inc GS.N officers and directors reached a US$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 U.S. District Judge Vernon Broderick.