Goldman Sachs $79.5 Million Derivative Deal Wins Initial Approval

Goldman Sachs Group Inc. shareholders won initial court approval of a $79.5 million settlement in their derivative litigation against the investment bank’s officers and directors over its involvement in the 1MDB bribery scandal in Malaysia.

The settlement–one of the largest ever in a shareholder derivative action in the Second Circuit–is “highly favorable,” said Judge Vernon Broderick in the US District Court for the Southern District of New York.

Insurers for former Goldman CEO Lloyd Blankfein, its current CEO David Solomon, and other executives will pay the settlement. The money will be used for the bank’s compliance activities, including ...