Singapore’s DBS Bank faces S$1.30b lawsuit linked to 1MDB

DBS Bank, Singapore's largest financial institution, is facing a $1 billion lawsuit filed by liquidators of four companies associated with the 1MDB scandal. According to Reuters, the liquidators have filed and served a damages claim against DBS Bank, alleging they suffered over $1 billion in financial losses. However, DBS Group has rejected the claim and stated it will vigorously fight the lawsuit, adding that the company has not made any provision for the legal proceedings. The bank has not disclosed more details regarding the allegations it faces.

This lawsuit comes amid broader efforts to recover money belonging to 1Malaysia Development Berhad (1MDB), where U.S. investigators claim about $4.5 billion were stolen between 2009 and 2014 in a complex, global scheme. Notably, there were no claims against DBS before this lawsuit was filed. In July last year, liquidators from 1MDB sued Standard Chartered Bank in Singapore, alleging that the bank enabled fraud leading to over $2.7 billion in financial losses between 2009 and 2013. DBS Bank's shares closed 0.8% lower at S$77.50 on Wednesday.