CASES
Deutsche Bank AG
Class Period: Jan 3, 2007 to Jan 16, 2009
Lead Plaintiff Deadline: Aug 22, 2011 + Deadline passed
Summary of Case:
A securities class action has been filed against Deutsche Bank AG ("Deutsche Bank" or the "Company") on behalf of all persons who purchased or otherwise acquired the ordinary shares of Deutsche Bank from January 03, 2007 to January 16, 2009. This case has been filed in the USDC - New York (Southern).
The Complaint alleges as follows: During the Class Period, Defendants issued materially false and misleading statements regarding the Company's business and financial results and concealed the Company's failure to write down impaired securities containing mortgage-related debt. As a result of Defendants' false statements, Deutsche Bank shares traded at artificially inflated prices during the Class Period, reaching a high of $159.59 per share in May 2007. Later, Deutsche Bank's shares declined as it reported billions of dollars in losses, many of which were directly or indirectly related to mortgage-backed securities.
On January 16, 2009, after Deutsche Bank issued an update on its fourth quarter 2008 performance, Fitch Ratings placed Deutsche Bank's AA- rating on Rating Watch Negative. On this news, Deutsche Bank shares fell to close at $21.27 per share on January 20, 2009 (the next trading day) - a decline of more than 86% from their Class Period high.
The true facts, which were known by the Defendants but concealed from the investing public during the Class Period, were as follows: (a) Defendants failed to record adequate provisions for losses on the deterioration in mortgage assets and collateralized debt obligations on Deutsche Bank's books caused by the high amount of non-collectible mortgages included in the Company's portfolio; (b) Deutsche Bank's MortgageIT subsidiary was issuing and had issued billions of dollars of mortgage loans which did not comply with stated lending practices, leading to thousands of defaults; (c) Deutsche Bank's internal controls were inadequate to ensure that losses on residential mortgage-related assets were accounted for properly; and (d) Deutsche Bank had transferred billions of dollars in defaulting, or soon-to-default, mortgages to unwitting investors and government programs due to its disregard of adverse findings by outside consultants.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.