1MDB withdraws US$248m lawsuit against Riza, Red Granite Pictures

Summary

• 1MDB withdraws US$248 million (RM1.09 billion) civil suit against Riza Abdul Aziz and his company Red Granite.

• Riza’s lawyer Shafee Abdullah does not object to suit withdrawal.

• KL High Court sets Feb 28 for submissions on the issue of costs.

1MDB has reportedly withdrawn its US$248 million civil suit against Najib Abdul Razak’s stepson Riza Shahriz Abdul Aziz and his company Red Granite, during proceedings at the Kuala Lumpur High Court today.

The Edge reported that 1MDB lead counsel Rabindra S Nathan of Messrs Shearn Delamore told the court he had received instructions from the sovereign wealth fund to withdraw the case.

“I have received instructions to withdraw the actions against all the defendants,” Rabindra reportedly said.

No reason was given for the withdrawal, The Edge reported. It further stated that Riza’s counsel, Shafee Abdullah, did not object to the withdrawal.

Judge Raja Ahmad Mohzanuddin Shah Raja Mohzan then fixed Friday for submissions on the issues of cost for both parties.

The proceedings by 1MDB against Riza (above), Red Granite Pictures Incorporated and Red Granite Capital Limited began on Oct 16 last year, with Riza’s defence commencing last week.

‘Global settlement’ on the cards

Last week’s proceedings saw MACC special operations director Zamri Zainul Abidin testifying for the defendants Riza and Red Granite.

Zamri had reportedly testified that Riza received a discharge not amounting to an acquittal (DNAA) for five counts of money laundering for the same US$248 million.

According to The Edge, Zamri also testified that in the representations sent to the Attorney-General’s Chambers, Riza and his lawyers said they would work towards a global settlement on the recovery of the US$248 million.

Red Granite Pictures, co-founded by Riza and American film producer Joey McFarland, had produced the Academy Award-winning "The Wolf of Wall Street" starring Leonardo DiCaprio, and other movies.

On May 7, 2021, 1MDB and its subsidiaries filed the lawsuit against Riza and his two companies for purportedly receiving US$248 million in funds misappropriated from 1MDB, which they allegedly misused for personal gain including by financing film production and buying up various properties.

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