Minister in the Prime Minister’s Department in charge of law Azalina Othman Said said furnishing additional facts for a lawsuit did not require the action to be withdrawn through a supplementary application.
“Rule 11 of the United States’ Federal Rules of Civil Procedure (FRCP) provides that claims brought in the federal courts should have merit and are not brought for an improper purpose,” she said in a statement today.
“This is also to discourage dilatory or abusive tactics by any lawyer and to streamline the litigation process by lessening the amount of frivolous matters brought before the federal courts.
“Therefore, it is observed that the decision of Husam and Chang to drop their class action against US-based corporations and individuals linked to alleged embezzlement and money laundering involving 1MDB demonstrates that their claim is a frivolous claim or a baseless lawsuit.”
She also said that the entire scenario only revealed the unscrupulous intention of both Husam and Chang, whom she alleged had filed the suit merely for cheap publicity.
“Husam’s justification, saying that the withdrawal is for the purpose of aligning the claims following new developments in the case, is unacceptable.
“The duo, not only attempted to embarrass Malaysia, but can also be seen as being unaware of the court processes and the basic requirements of filing a class action.
“They are politically motivated and rushed the matter for the purpose of gaining mere publicity by means of abusing the court.”
In August, Chang and Husam filed a suit “on behalf of all Malaysian citizens” in which they sought damages and the return of property and other assets which they alleged were purchased using money stolen from 1MDB.
The suit said the money raised through bond offerings by 1MDB was used to fund Red Granite, which financed the film “Wolf of Wall Street”.
Red Granite was founded in 2010 by Prime Minister Najib Razak’s stepson, Riza Aziz, and his friend, Joey McFarland.
Riza was among those named in a suit filed by the US Department of Justice (DoJ), which claimed that more than USD3.5 billion was diverted from the 1MDB fund that Najib founded in 2009, shortly after coming to power.