A SUIT against Goldman Sachs Group Inc by a private equity firm, accusing the bank of shortchanging it to “curry favour” with Prime Minister Najib Razak, has been dismissed by a Manhattan court, reported Reuters.

The US$510 million (RM2.1 billion) suit was filed by Primus Pacific Partners LP over alleged “bad” advice given to Goldman Sachs’ client, EON Capital, in which Primus had a 20% stake.

Primus accused Goldman Sachs and its former banker, Tim Leissner, of advising EON to sell itself to Hong Leong Bank Bhd at a lower price so as to “curry favour” with Najib, whose brother, Nazim Razak, was a Hong Leong board member.

Nazim retired from Hong Leong Capital Bhd as its non-executive director last month.

Another brother was working for a firm advising Hong Leong on the purchase of EON, Reuters said.

The advice allegedly showed Goldman Sachs’ conflict of interest with Najib and state investment fund 1Malaysia Development Bhd, of which the prime minister had been advisory board chairman.

Primus took legal action in July last year after the US Department of Justice filed to seize more than US$1 billion in assets bought with funds allegedly stolen from 1MDB.

Some of these funds included money from bond offerings arranged by Goldman Sachs, said Reuters.

Najib, his brothers and 1MDB were not named as defendants.

Justice O Peter Sherwood, in a decision on November 9, said the suit “had no substantial nexus with New York” as the allegations of wrongdoing took place in Malaysia and most witnesses were not in the US.

Primus had sought at least US$170 million in damages and at least US$340 million in punitive damages. – November 18, 2017.