Kuala Lumpur: 1Malaysia Development Berhad (1MDB) has officially withdrawn its lawsuit against Riza Shahriz Abdul Aziz, stepson of former Prime Minister Datuk Seri Najib Tun Razak. The legal action was initially initiated to address alleged misappropriation of USD248 million in funds purportedly used for financing movie productions and acquiring real estate.

According to BERNAMA News Agency, Counsel Rabindra S. Nathan, representing 1MDB along with its three subsidiaries, informed the High Court about the decision to withdraw the case against all the defendants. Riza Shahriz's legal representative, Tan Sri Muhammad Shafee Abdullah, expressed no objections to this decision.

In response to the withdrawal, Judge Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan instructed the parties involved to submit details regarding legal costs. A decision is scheduled for February 28. The trial, which commenced on October 16 of the previous year, saw 1MDB and its subsidiaries-1MDB Energy Limited, 1MDB Energy Holdings Limited, and 1MDB Energy (Langat) Limited-call upon three witnesses, including former 1MDB general counsel Jasmine Loo Ai Swan and ex-CEO Datuk Shahrol Azral Ibrahim Halmi.

The lawsuit, filed in May 2021 by 1MDB and its subsidiaries against Riza Shahriz, Red Granite Pictures Inc, and Red Granite Capital Ltd, alleged the defendants received approximately USD248 million, which was then misused for personal gain. The plaintiffs sought a declaration of responsibility from Riza Shahriz for the misappropriated funds and demanded repayment.

In their defense, the defendants asserted that funding for several films produced in the United States was sourced from a loan provided by the Saudi royal family or the International Petroleum Investment Company.

Post-proceedings, Muhammad Farhan Muhammad Shafee, another lawyer for Riza Shahriz, revealed that the withdrawal was influenced by testimony from Malaysian Anti-Corruption Commission (MACC) Special Operations Division director Datuk Mohamad Zamri Zainul Abidin. He indicated that a representation for a global settlement had been submitted to the Attorney General's Chambers (AGC), which agreed to and recorded a consent judgment at the Sessions Court on May 14, 2020.

The Sessions Court had previously, on May 14, 2020, granted Riza Shahriz a discharge not amounting to an acquittal on five charges of laundering USD248 million allegedly misappropriated from 1MDB funds.