Their lawyer Mohamed Haniff Khatri Abdulla said this was because the matter had become academic as Putrajaya was taking steps to act against those who broke the law.
He said when the suit was filed in 2016, all law enforcement and regulatory bodies were crippled under the previous Barisan Nasional (BN) government.
“Even the old 1MDB board was silent in the conspiracy to embezzle funds from the government-linked company,” he said in a text message.
However, he said, all agencies started probing the 1MDB-International Petroleum Investment Company (IPIC) financial fiasco after the Pakatan Harapan government was voted into power.
Haniff said the new 1MDB board had also announced that it would take action against the previous board members for the benefit of the people and taxpayers.
“It has now become crystal clear that Gerakan Anakmuda Tolak Najib’s (Ganti) action then had basis while the enforcement agencies and regulatory bodies were silent about the matter,” he said.
Haniff said Ganti had also filed a notice of discontinuance of its action.
The decision to discontinue the appeal was communicated to deputy court registrar Intan Syafinaz Ros’lin during a case management.
Lawyer Nur Dalila Husna Azmi repesented Ganti, Nik Alia Hanafi appeared for Najib, Wong Tee Jie for 1MDB while federal counsel Shaiful Nizam Shahril represented the government.
Ganti brought a class action against Najib, the Malaysian government and 1MDB for paying US$1.2 billion (RM4.75 billion) to Abu Dhabi-based IPIC.
On Jan 9, High Court judge Hue Siew Kheng dismissed applications by Najib, the government and 1MDB to annul the suit on grounds that the youth leaders had the legal standing to bring the suit as the payment involved public funds.
The judge also held that the litigants had an arguable case and that the matter must go to trial.
Ganti sought a court order that the settlement agreement on May 11, 2016, between IPIC and 1MDB at the London International Court of Arbitration be declared invalid.
On March 26, the Court of Appeal threw out the suit, saying Ganti did not have the legal standing to file it against the three appellants.
A three-member bench chaired by Ahmadi Asnawi held that there was also no contract between the parties (Ganti) and the appellants (Najib, the government and 1MDB).
Lawyer: Ex-opposition youth leaders may withdraw suit over IPIC