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Kessler Topaz Achieves Class Certification Win in 1MDB Fraud Suit Against Goldman Sachs

April 9, 2024

On April 5, 2024, Magistrate Judge Katharine H. Parker of the U.S. District Court for the Southern District of New York issued a 59-page Report and Recommendation in Sjunde AP-Fonden v. The Goldman Sachs Group, Inc., No. 18-cv-12084, recommending that the District Court grant Lead Plaintiff AP7’s motion to certify the class in this long-running securities fraud litigation.  This case arises out of Goldman’s role in the 1MDB Malaysian sovereign wealth fund corruption and money laundering scandal, one of the largest financial frauds in recent memory.  Judge Parker’s decision follows a full-day evidentiary hearing and oral argument held on February 22, 2024.

In recommending that the District Court certify the class of Goldman investors, Judge Parker held that Goldman failed to prove a lack of price impact and rebut the presumption of class-wide reliance under the standards recently 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). This opinion marks the first decision in the Second Circuit certifying or recommending certification of a shareholder class under the Arkansas Teacher framework.  In appointing Kessler Topaz as class counsel, Judge Parker noted the firm’s “excellent advocacy in this case” and “top quality briefs.”

The Kessler Topaz team representing AP7 and the class include Andrew Zivitz, Matthew Mustokoff, Johnston Whitman Jr., Jamie McCall, David Bocian, Nathan Hasiuk, Vanessa Milan, and Nathaniel Simon.