Malaysia’s 1MDB is suing PetroSaudi, White & Case

Scandal-embroiled Malaysian sovereign fund 1Malaysia Development Berhad (1MDB) has filed a lawsuit against top executives of PetroSaudi International, seeking the return of $1.83 billion invested in the joint venture, state news agency Bernama reported on Thursday.

In 2009, the fund entered into a partnership with PetroSaudi, which ultimately became an unsuccessful joint venture to develop oil fields.

In a lawsuit filed on May 7 in the Kuala Lumpur High Court, 1MDB alleged that PetroSaudi chief investment officer Patrick Mahony helped several people, including former Malaysian prime minister Najib Razak and fugitive financier Jho Low, to misappropriate funds.

Bernama reported that 1MDB also named British law firm White & Case LLP as a defendant in the lawsuit, maintaining that it acted on Mahony’s instructions by preparing purchase and loan agreements on behalf of PetroSaudi in order to defraud 1MDB.

Reuters was unable to reach Mahony for comment. White & Case did not immediately respond to a request for comment.

The state fund is demanding that Mahony and White & Case return it $1.83 billion, among other things.

Lim Chee Wee Partnership, the Malaysian law firm representing 1MDB, confirmed the filing to Reuters.

Malaysian and US investigators estimate $4.5 billion was siphoned off, turns 1MDB over after its 2009 founding, implicating Najib Razak, Goldman Sachs (GS.N), opening new employees and high-level officials in other places.