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Goldman wins dismissal of lawsuit in U.S. over Malaysia ties

Nov 17 (Reuters) - Goldman Sachs Group Inc has won the dismissal of a $510 million lawsuit in New York by a private equity firm that accused the Wall Street bank of shortchanging it in a merger to curry favor with Malaysia's prime minister.

In a decision made public on Friday, Justice O. Peter Sherwood of a state court in Manhattan said the lawsuit by Primus Pacific Partners LP "had no substantial nexus with New York," and should be heard in another forum.

Primus had sought damages from Goldman and former star banker Tim Leissner, accusing them of providing bad merger advice in 2010 to Goldman client EON Capital, in which Primus held a 20 percent stake.

The plaintiff said the advice reflected alleged Goldman conflicts of interest with Malaysian Prime Minister Najib Razak and Malaysia's 1MDB sovereign wealth fund. (Reporting by Jonathan Stempel in New York Editing by Jonathan Oatis)