1MDB Secures Fresh Hearing in $3.78 Billion Case Against Jho Low and Father

The Court of Appeal in Malaysia has ordered a fresh hearing for 1Malaysia Development Bhd (1MDB) and four of its subsidiaries to contest a judgment in default amounting to approximately $3.78 billion against fugitive businessman Low Taek Jho, commonly known as Jho Low, and his father, Tan Sri Larry Low Hock Peng. This decision, made on October 19, 2023, allows 1MDB to pursue its case against the Low family after the High Court previously dismissed its application to set aside the judgment.

The three-member bench, chaired by Justice Azhahari Kamal Ramli, ruled that the case should be reheard by a different High Court judge. A case management session is scheduled for October 26, 2023, to facilitate the next steps in the proceedings. The appeal arose after the High Court rejected 1MDB's earlier request to overturn the judgment, citing a delay of nearly three years in filing the application.

In 2022, the High Court had entered a judgment in default against Jho Low and his father after their defenses were struck out for breaching a Mareva injunction, which is designed to prevent defendants from dissipating their assets. The judgment mandated that the Lows pay a total of $3,782,637,525, plus annual interest of 5% from various dates between 2010 and 2014 until the full amount is settled.

“Lee Shih said the companies had been denied a fair hearing because they had not been able to present arguments.”Lee Shih, lawyer for 1MDB

1MDB's legal team, led by lawyer Lee Shih, argued that new evidence emerged from foreign proceedings that was not available during the initial judgment. This evidence, they said, highlights the complexity and sophistication of the alleged fraud that involved multiple entities across different jurisdictions. The lawsuit, originally filed in May 2021, also includes claims against Jho Low's mother, Puan Sri Goh Gaik Ewe, his siblings, and an associate, Tan Kim Loong, for fraudulent concealment and misappropriation of funds.

1MDB filed its application to set aside the judgment in default in 2025, seeking to have the dispute proceed to a full trial and pursue additional relief against Jho Low and his father.