Troubled Malaysian state fund 1MDB has filed a lawsuit against Patrick Mahony, an executive at Petrosaudi International Ltd., seeking US$1.83 billion over a 2009 joint venture with the oil exploration firm. 1MDB claims it was misled into believing that a Saudi king owned Petrosaudi, leading to a joint venture that resulted in a complete loss of its investment.
In a court filing to the Kuala Lumpur High Court, 1MDB alleged that Mahony helped misappropriate funds alongside individuals like Najib Razak and Jho Low. The state fund also named UK-based law firm White & Case LLP as a defendant, accusing them of preparing documents to deceive 1MDB on Mahony’s instructions.
1MDB is seeking repayment of the US$1.83 billion from Mahony and White & Case, among other damages. This legal battle is part of the ongoing scandal that has implicated various high-profile figures and institutions, including allegations of siphoning billions of dollars from 1MDB since its inception.