On May 20, 2026, Kessler Topaz filed a motion seeking preliminary approval of a $500 million settlement in Sjunde AP-Fonden v. The Goldman Sachs Group, Inc., No. 1:18-cv-12084-VSB-KHP, a securities fraud suit in Manhattan federal court. This long-running case led by Lead Plaintiff Sjunde AP-Fonden arises out of Goldman Sachs’ role in the 1Malaysia Development Berhad (1MDB) corruption scandal, one of the largest financial frauds in recent memory. If approved by the Court, the settlement will rank among the top 20 largest securities class action settlements in the Second Circuit since the passage of the Private Securities Litigation Reform Act of 1995.
The shareholder class alleged that Goldman and former CEO Lloyd Blankfein made statements that fraudulently downplayed the bank’s role—and complicity—in the 1MDB scandal. In 2012 and 2013, Goldman served as underwriter for three bond offerings for 1MDB, a Malaysian sovereign wealth fund. The fund was sponsored by the now-imprisoned former Prime Minister of Malaysia, Najib Razak, and operated by Jho Low, a well-known corruption risk and currently a fugitive from justice. Unbeknownst to the public, the 1MDB bond deals served as the conduit for a massive money laundering scheme orchestrated by Goldman bankers, Najib, and Low. According to the lawsuit, as Goldman faced public scrutiny over its role in the offerings, Goldman and Blankfein misled investors, falsely denying that the bank had evidence of Low’s involvement and other red flags surrounding the deals. The settlement follows eight years of litigation, including full fact and expert discovery and class certification proceedings. On September 4, 2025, U.S. District Judge Vernon S. Broderick issued a 35-page opinion adopting the 2024 Report and Recommendation of Magistrate Judge Katharine H. Parker recommending certification of the shareholder class. In granting Sjunde AP-Fonden’s motion for class certification, Judge Broderick held that Goldman failed to prove a lack of price impact and rebut the presumption of class-wide reliance under the standards articulated by the Second Circuit Court of Appeals in Arkansas Teacher Retirement System. v. Goldman Sachs Grp., Inc., 77 F. 4th 74 (2d Cir. 2023). The District Court’s adoption of Judge Parker’s Report and Recommendation is significant as the Report was the first judicial decision in the Second Circuit to certify or recommend certification of a Section 10(b) plaintiff class under the Arkansas Teacher framework.
The Kessler Topaz team representing Sjunde AP-Fonden and the Class includes Matthew Mustokoff, Andrew Zivitz, Darren Check, Jamie McCall, David Bocian, Nathan Hasiuk, Vanessa Milan, and Nathaniel Simon.