Deutsche Bank Aktiengesellschaft
- Company Name
- Deutsche Bank Aktiengesellschaft
- Stock Symbol
- Class Period
- March 20, 2017 to May 30, 2018
- Motion Deadline
- August 6, 2018
- Southern District of New York
The complaint charges Deutsche Bank and certain of its officers with violations of the Securities Exchange Act of 1934. Deutsche Bank is a global financial service provider delivering commercial, investment, private and retail banking. Deutsche Bank offers debt, foreign exchange, derivatives, commodities, money markets, repo and securitization, cash equities, research, equity prime services, loans, convertibles, advice on mergers & acquisitions and initial public offerings, trade finance, retail banking, asset management and corporate investments.
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose adverse information regarding the Company’s business and operations. Specifically, despite defendants’ repeated assertions that evaluation of the Company’s disclosure controls and procedures was “carried out under the supervision and with the participation of [its] management” and that “the financial statements and other information” contained in its SEC filings “fairly present in all material respects the financial condition, results of operations and cash flow of the company,” in fact, Deutsche Bank’s internal control environment and infrastructure were materially weak and deficient. As a result of this information being withheld from investors during the Class Period, Deutsche Bank securities traded at artificially inflated prices, with its share price reaching a high of more than $20 per share.
Then, on May 31, 2018, The Wall Street Journal reported that the U.S. Federal Reserve had designated Deutsche Bank’s U.S. business to be in “troubled condition,” citing concerns “about its controls around measuring financial exposure to clients and valuing collateral that backed loans.” The article further reported that the “Fed’s downgrade, which took place about a year ago, is secret and hadn’t previously been made public.” In addition, the Federal Deposit Insurance Corporation added Deutsche Bank's federally insured U.S. business to a list of banks with weaknesses serious enough to endanger their financial viability. On this news, Deutsche Bank’s share price fell over 4%, to close at $11.08 per share on May 31, 2018.