1MDB suit against UK firm dismissed over jurisdiction, time limit

The Court of Appeal in Malaysia has dismissed a lawsuit filed by the state investment fund 1MDB against UK law firm White & Case LLP. The ruling, delivered unanimously by the three-member bench, found that the High Court did not have jurisdiction to hear the case due to jurisdictional requirements under Malaysian law. Justice K Muniandy, who authored the judgment, stated that the procedural requirements for serving the lawsuit outside Malaysia were not met.

Additionally, the Court ruled that the lawsuit was filed too late under the Limitation Act 1953, as the alleged losses and fraud involving 1MDB had already been made public in 2015 and 2016. The bench also dismissed White & Case's appeal and set aside the High Court's decision to consolidate the case with a separate action against Deutsche Bank.

The lawsuit, filed at the Kuala Lumpur High Court, sought US$1.83 billion and US$33 million in damages from White & Case and Patrick Mahony, a director of PetroSaudi International Ltd. The fund alleged that White & Case assisted PetroSaudi in committing fraud and conspiracy against 1MDB in relation to two corporate transactions involving a 2009 joint venture and the restructuring of 1MDB's stake in the venture in 2010.

Mahony and White & Case are represented by legal teams led by Cyrus Das and Lim Chee Wee, respectively.