Tags: shareholder | lawsuit | mortgage | securities

Deutsche Bank Must Face Shareholder Lawsuit

Wednesday, 27 Mar 2013 01:23 PM

Deutsche Bank AG lost a bid Wednesday to end a shareholder lawsuit accusing it of misrepresenting the risk of packaging home loans into complex financial products.

U.S. District Judge Katherine Forrest in Manhattan denied a motion by Deutsche to dismiss the lawsuit, which seeks class-action status for its investors accusing it of a scheme to maximize profits at their expense.

"Plaintiffs have certainly set forth sufficient plausible allegations to support a claim for a fraudulent scheme against Deutsche Bank," Forrest wrote.

Representatives for Deutsche and the plaintiffs did not immediately respond to a request for a comment.

Filed in 2011, the lawsuit accused Deutsche of issuing false and misleading statements about its business and financial results.

The lawsuit said Deutsche Bank had put together and sold mortgage-backed securities that the bank knew were not good quality, misrepresented its risk management practices and hid its failure to write down impaired securities.

After Deutsche announced billions of dollars in losses starting in 2008, its stock fell from a high of $159.59 in May 2007 to $21.27 in January 2009, the complaint said.

The U.S.-traded shares were down 3.1 percent at $39.01 in afternoon New York Stock Exchange trading on Wednesday.

© 2017 Thomson/Reuters. All rights reserved.

 
1Like our page
2Share
Companies
Deutsche Bank AG lost a bid Wednesday to end a shareholder lawsuit accusing it of misrepresenting the risk of packaging home loans into complex financial products.
shareholder,lawsuit,mortgage,securities
198
2013-23-27
Wednesday, 27 Mar 2013 01:23 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved