Deutsche Bank Aktiengesellschaft
Lead Plaintiff Deadline: 09/14/2020
SUMMARY OF CASE:
A securities class action has been filed against Deutsche Bank Aktiengesellschaft (DB) on behalf of a class consisting of all persons and entities other than Defendants who purchased or otherwise acquired Deutsche Bank securities between November 7, 2017 through July 6, 2020. This case has been filed in the USDC – NJ.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that: (1) Deutsche Bank had failed to remediate deficiencies related to AML, its disclosure controls, procedures, and internal control over financial reporting, and its U.S. operations’ troubled condition; (2) as a result, the Bank failed to properly monitor customers that the Bank itself deemed to be high risk, including, among others, the convicted sex offender Jeffrey Epstein (“Epstein”) and two correspondent banks, Danske Estonia and FBME Bank, which were both the subjects of prior scandals involving financial misconduct; (3) the foregoing, once revealed, was foreseeably likely to have a material negative impact on the Bank’s financial results and reputation; and (4) as a result, the Bank’s public statements were materially false and misleading at all relevant times.
On May 13, 2020, media outlets reported that the Federal Reserve had sharply criticized Deutsche Bank’s U.S. operations in an internal audit. The audit reportedly found that Deutsche Bank had failed to address multiple concerns identified years earlier, including concerns related to the Bank’s AML and other control procedures. Following this news, the value of Deutsche Bank’s ordinary shares fell $0.31 per share, or 4.49%, to close at $6.60 per share on May 13, 2020.
Then, on July 7, 2020, the Federal Reserve’s criticism of Deutsche Bank’s failure to address its AML and other issues was reaffirmed when the New York State Department of Financial Services fined the Bank $150 million for neglecting to flag numerous questionable transactions from accounts associated with Epstein and with two correspondent banks, Danske Estonia and FBME Bank, both of which were the subjects of prior scandals involving financial misconduct. Following this news, the value of Deutsche Bank’s ordinary shares fell $0.13 per share, or 1.31%, to close at $9.82 per share on July 7, 2020.