1MDB, subsidiaries get leave to continue lawsuit against Jho Low's associate

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KUALA LUMPUR: 1Malaysia Development Berhad (1MDB) and its four subsidiaries on Wednesday (June 7) obtained permission from the High Court here to proceed with a US$2.795bil (RM12.8bil) lawsuit against an associate of fugitive businessman Low Taek Jho or Jho Low, namely Eric Tan Kim Loong, who was declared bankrupt.

Lawyer Siva Kumar Kanagasabai, who represents 1MDB said, Senior Assistant Registrar Haneefa Ariffin allowed the application of 1MDB, 1MDB Energy Holdings Limited, 1MDB Energy Limited, 1MDB Energy Limited and Global Diversified Investment Company Ltd, formerly known as 1MDB Global Investments Limited as applicants at the proceedings of the case today.

"When a person is declared bankrupt, then court action cannot be continued except with the permission of the court and permission was obtained today by my client," he said when contacted. In the application, the five companies requested permission to proceed with the lawsuit against Tan on the grounds of several causes of action including breach of trust, breach of fiduciary duty and conspiracy which all occurred before Tan was declared bankrupt on June 14, 2022.

According to him, Tan should not keep the funds and is responsible for returning the money to the applicants.

 

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