Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Deutsche Bank in $26.3 million shareholder settlement over Epstein, Russian oligarch ties

Stock Markets Sep 23, 2022 05:00PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The logo of Deutsche Bank is pictured on a company's office in London, Britain July 8, 2019. REUTERS/Simon Dawson/File Photo
 
DBKGn
-3.01%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DB
-0.80%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Jonathan Stempel

NEW YORK (Reuters) - Deutsche Bank AG (NYSE:DB) agreed to pay $26.25 million to settle a U.S. shareholder lawsuit accusing the German bank of lax oversight while doing business with risky, ultra-rich clients like Jeffrey Epstein and Russian oligarchs.

The preliminary all-cash settlement filed on Friday in federal court in Manhattan requires approval by U.S. District Judge Jed Rakoff, who in June allowed the proposed class action to proceed.

Shareholders led by Yun Wang, who traded Deutsche Bank (ETR:DBKGn) stock in 2018 and 2020, claimed that the bank had known its know-your-customer and anti-money laundering controls were ineffective, and that its share price fell as problems emerged.

Deutsche Bank denied wrongdoing in agreeing to settle. Chief Executive Christian Sewing and his predecessor John Cryan are also defendants, and also denied wrongdoing.

A bank spokesman declined to comment. Sewing has since taking over in 2018 tried to show investors that Deutsche Bank has addressed its internal controls shortfalls.

The lawsuit faulted Deutsche Bank's work with Epstein, the late financier and sex offender, and with Danske Bank's Estonia branch, which become embroiled in a money laundering scandal.

New York's Department of Financial Services fined Deutsche Bank $150 million in July 2020 over its relationships with Epstein and Danske Estonia.

Shareholders also objected to Deutsche Bank's taking on oligarchs like billionaire Roman Abramovich as clients, in what they called the bank's "relentless pursuit of profits."

Friday's settlement covers Deutsche Bank investors in the United States from March 14, 2017 to Sept. 18, 2020.

Lawyers for the plaintiffs said the $26.25 million payout is 49.4% of the "likely recoverable" damages available, compared with a median 1.8% in settled securities class actions in 2021.

The lawyers may seek up to one-third of the settlement fund for legal fees.

The case is Karimi v Deutsche Bank AG et al, U.S. District Court, Southern District of New York, No. 22-02854.

Deutsche Bank in $26.3 million shareholder settlement over Epstein, Russian oligarch ties
 

Related Articles

Li Auto Launches L7 and L8 Electric SUVs
Li Auto Launches L7 and L8 Electric SUVs By Investing.com - Oct 03, 2022

By Michael Elkins   Shares of electric vehicle maker, Li Auto (NASDAQ:LI) are down 0.7% in pre-market trading Monday morning after the company launched their L8 and L7 SUVs. The L8...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email