Deutsche Bank Aktiengesellschaft Class Action Lawsuit
- Company Name
- Deutsche Bank Aktiengesellschaft
- Stock Symbol
- Class Period
- November 7, 2017 to July 6, 2020
- District of New Jersey
The Deutsche Bank Aktiengesellschaft class action lawsuit charges Deutsche Bank and certain of its officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of Deutsche Bank securities between November 7, 2017 and July 6, 2020, inclusive (the “Class Period”). The Deutsche Bank class action lawsuit was commenced on July 15, 2020 in the District of New Jersey and is captioned Karimi v. Deutsche Bank Aktiengesellschaft, No. 20-cv-08978.
Deutsche Bank provides investment, financial, and related products and services to private individuals, corporate entities, and institutional clients worldwide. Deutsche Bank has been the subject of scandal, investigation, and regulatory enforcement for years because of anti-money laundering compliance failures and deficiencies in its disclosure controls and procedures and internal control over financial reporting, causing it to have one of the lowest gradings offered by the U.S. Federal Reserve.
The Deutsche Bank class action lawsuit alleges that defendants made materially false and/or misleading statements, as well as failed to disclose that: (i) Deutsche Bank had failed to remediate deficiencies related to anti-money laundering compliance, its disclosure controls and procedures and internal control over financial reporting, and its U.S. operations’ troubled condition; (ii) as a result, Deutsche Bank failed to properly monitor customers that Deutsche Bank itself deemed to be high risk, including, among others, convicted sex offender Jeffrey Epstein and two correspondent banks, Danske Estonia and FBME Bank, which were both subjects of prior scandals involving financial misconduct; (iii) the foregoing, once revealed, was foreseeably likely to have a material negative impact on Deutsche Bank’s financial results and reputation; and (iv) as a result, Deutsche 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 Deutsche Bank’s anti-money laundering compliance and other control procedures. On this news, the value of Deutsche Bank’s ordinary shares fell approximately 4.5%.
Then, on July 7, 2020, the Federal Reserve’s criticism of Deutsche Bank’s failure to address its anti-money laundering protocols and other issues was reaffirmed when the New York State Department of Financial Services fined Deutsche Bank $150 million for neglecting to flag numerous questionable transactions from accounts associated with Epstein and two correspondent banks, Danske Estonia and FBME Bank, both of which were subjects of prior scandals involving financial misconduct. On this news, the value of Deutsche Bank’s ordinary shares fell an additional 1.31%.
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