On June 7, 2018, investors sued Deutsche Bank Aktiengesessschaft (Deutsche Bank or the “Company”) in United States District Court, Southern District of New York. Plaintiffs in the federal securities class action allege that they acquired Deutsche Bank stock at artificially inflated prices between March 20, 2017 and May 30, 2018 (the “Class Period”). They are now seeking compensation for financial losses incurred upon public revelation of the Company’s alleged misconduct during that time. Here’s everything you need to know about the Deutsche Bank class action lawsuit (DB class action lawsuit):

Summary of the Allegations

Company Background

Deutsche Bank (NYSE: DB) is a worldwide financial service provider that engages in commercial, investment, private and retail banking. As such, it offers its customers comprehensive services including but not limited to debt, foreign exchange, derivatives, commodities, money markets, repo and securitization, cash equities and research.

The Company’s history dates to 1870, when Adelbert Delbrück, a private banker, and Ludwig Bamberger, a politician and currency expert, first proposed its creation. The King of Prussia approved its articles of incorporation on March 10, 1870, and it officially opened for business that April.

Its first offices were located in Berlin, and its first domestic branches were located in Bremen and Frankfurt am Main. Its first foreign branches were located in Shaghai, Yokahama and London. Deutsche Bank established its first U.S. branch in New York in 1979.

Although its executive offices are now located in Frankfurt am Main, Deutsche Bank also has a U.S. office on Wall Street.

Summary of Facts

Deutsche Bank and three of its current and former officers and/or directors now stand accused of deceiving investors by lying and withholding critic information about the Company’s business practices during the Class Period.

Specifically, they are accused of omitting truthful information about the efficacy of its internal control environment and infrastructure from SEC filings and related materials. By knowingly or recklessly doing so, they allegedly caused Deutsche Bank stock to trade at artificially inflated prices during the time in question.

The truth emerged in an article published by the Wall Street Journal on May 31, 2018.  The article revealed that “the U.S. Federal Reserve had designated Deutsche Bank’s U.S. business to be in ‘troubled condition,’ citing controls about its around measuring financial exposure to clients and valuing collateral that backed loans.’” The article also revealed that, “the Federal Deposit Insurance Corporation has added Deutsche Bank’s subsidiary, Deutsche Bank Trust Company Americas to its ‘problem banks’ list of at-risk institutions.”

A closer look…

As alleged in the June 7 complaint, the Company repeatedly made misleading public statements throughout the Class Period.

For instance, on a form filed with the SEC at the beginning of the Class Period, it said in pertinent part: “An evaluation was carried out under the supervision and with the participation of our management, including our Chairman and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures… as of December 31, 2016. Based upon such evaluation, our Chairman and Chief Financial Officer concluded that the design and operation of our disclosure and procedures were effective as of December 31, 2016.”

The same form included certifications signed by two of the Individual Defendants that stated: “The financial statements, and other financial information included in [the 2016 20-F], fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in [the 2016 20-F].”

Deutsche Bank reiterated those statements and included signed certifications pertaining to the accuracy of its financial statements on another form filed with the SEC on March 16, 2018.

Impact of the Alleged Fraud on Deutsche Bank’s Stock Price and Market Capitalization

The following chart illustrates the stock price during the class period:

Actions You May Take

If you have purchased shares during the Class Period, you may join the class action as a lead plaintiff, remain a passive class member, or opt out of this litigation and pursue individual claims that may not be available to the class as a whole.

NOTE: The deadline to file for lead plaintiff in this class action is August 6, 2018. You must file an application to be appointed lead plaintiff prior to this deadline in order to be considered by the Court. Typically, the plaintiff or plaintiffs with the largest losses are appointed lead plaintiff.

In order to identify your potential exposure to the alleged fraud during the time in question, you may wish to perform an analysis of your transactions in Deutsche Bank common stock using court approved loss calculation methods.

Recently Filed Cases

Listed below are recently filed securities class action cases being monitored by us, along with the class period and the deadline to file a motion to be appointed as the Lead Plaintiff in the action.  Please contact us if you would like an LK report for any of these cases:

About Us

Levi & Korsinsky is a leading securities litigation firm with a hard-earned reputation for protecting investors’ rights and recovering losses arising from fraud, mismanagement and corporate abuse.  With thirty attorneys and offices in New York, Connecticut, California and Washington D.C., the firm is able to litigate cases in various jurisdictions in the U.S., England, and in other international jurisdictions.

Levi & Korsinsky provides portfolio monitoring services for high-net worth investors and institutional clients.  Our firm also assists investors in evaluating whether to opt-out of large securities class actions to pursue individual claims.

For additional information about this case or our institutional services, please contact us.