NEW YORK/LONDON (March 15): An Abu Dhabi-controlled investment fund has halted new business with Goldman Sachs Group Inc., adding to the growing fallout for the U.S. bank from its role in the 1MDB corruption scandal.
"We have suspended any activities with Goldman Sachs pending outcome of our existing litigation," Brian Lott, a spokesman for Mubadala Investment, said in a statement. "The only exceptions are engagements signed prior to the litigation, which will continue as per contractual terms."
The decision follows legal action being pursued by units of Mubadala to seek damages from the bank for what it calls its "central role" in the 1MDB scandal. International Petroleum Investment Co and Aabar Investments declared their intent to sue Goldman Sachs in November in a New York state court.
The move had left a cloud over Goldman’s business in a region that’s much more lucrative for it than Malaysia, where the saga originated. A Goldman Sachs spokesman didn’t immediately return requests for comment. Reuters earlier reported Mubadala’s decision to suspend ties with the New York-based firm.