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NEW YORK • Goldman Sachs Group and two former top executives were ordered by a United States judge on Monday to face a lawsuit accusing them of misleading shareholders about the bank s work for 1Malaysia Development Berhad (1MDB), a Malaysian fund that became embroiled in a corruption scandal. US District Judge Vernon Broderick said shareholders in the proposed class action adequately alleged that several statements by Goldman, former chief executive Lloyd Blankfein and former chief operating officer (COO) Gary Cohn about 1MDB and Goldman s ethics were false and misleading. Shareholders led by Swedish pension fund Sjunde AP-Fonden claimed that Goldman s market value fell by billions of dollars as the truth about its 1MDB dealings became public. ....
The 1MDB scandal has spurred court cases around the world, as Malaysian authorities try to track down more than $4 billion that was siphoned from the country’s economic development fund. GOLDMAN Sachs Group Inc., former chief executive officer Lloyd Blankfein and former chief operating officer Gary Cohn must face a shareholder lawsuit over the 1MDB global bribery scandal. U.S. District Judge Vernon Broderick in Manhattan on Monday denied requests from Goldman, Blankfein and Cohn to dismiss the lawsuit, led by Swedish pension fund Sjunde AP-Fonden, but dropped former co-Chief Operating Officer Harvey Schwartz from the case. Shareholders sued Goldman Sachs in late 2018, accusing it of misleading them about the firm’s work with the sovereign wealth fund, for which the bank arranged $6.5 billion in bond sales. The firm has denied culpability in the scandal and laid the blame on Tim Leissner, a former partner who has pleaded guilty and is cooperating with the government ....