KUALA LUMPUR, Nov. 14 -- Malaysia in in settlement talks with Swiss bank Julius Baer Group Ltd. over a US$112 million lawsuit filed by 1MDB's former unit, SRC International, which alleges the bank breached its fiduciary duties in the global financial scandal.

Datuk Seri Johari Abdul Ghani, chairman of the 1MDB asset recovery task force, confirmed the development to Bloomberg News.

"Mediation is ongoing," he was quoted as saying.

Julius Baer declined to comment on the talks.

The lawsuit, filed in a Hong Kong court in 2021, claims that SRC's former management instructed Julius Baer to make "fraudulent payments" of about US$112.5 million to third parties.

SRC alleges the bank carried out these instructions between 2013 and 2016, despite...