What is 1MDB suing Arul Kanda and Mohd Irwan for?

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1MDB is suing Arul Kanda and Mohd Irwan for breach of trust and conspiracy related to alleged misappropriation of company funds and resulting financial losses.

1Malaysia Development Berhad (1MDB) has initiated legal action against former chief executive officer Arul Kanda Kandasamy and former chairman of the board Tan Sri Mohd Irwan Serigar Abdullah. The lawsuits accuse the defendants of breach of trust and conspiracy, which have allegedly resulted in substantial financial losses for the company.
Allegations of Misappropriated Funds in Investment Schemes

1MDB contends that Arul Kanda and Mohd Irwan engaged in a conspiracy that led to losses amounting to US$1.83 billion. This figure is directly linked to 1MDB's investment in 1MDB-Petrosaudi Ltd, an investment that was later converted into the Brazen Sky Limited investment. These actions purportedly resulted in the loss of funds that were intended to be recoverable from the Bridge Global Fund.
Claims of Diversion of Company Funds to Third Parties

Further allegations detail the misappropriation of significant company funds by both defendants. 1MDB claims that US$3.5 billion in company funds were paid to Aabar Investments and an additional US$1.265 billion was paid to International Petroleum Investment Company. These payments are central to the breach of trust and conspiracy claims brought against Arul Kanda and Mohd Irwan.
Damages Sought and Employment Agreement Dispute

As a consequence of these alleged actions, 1MDB is seeking substantial damages totalling US$6.59 billion from both Arul Kanda and Mohd Irwan. In addition to these broader claims, 1MDB is also pursuing a separate claim of RM2.9 million specifically against Mohd Irwan. This additional sum relates to the alleged conspiracy with Arul Kanda to extend the latter's employment agreement, an action that 1MDB asserts was taken while disregarding the company's best interests and ultimately led to financial detriment.

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What is 1MDB suing Arul Kanda and Mohd Irwan for?

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