A large lender has settled with shareholders in a lawsuit accusing the lender of misrepresenting its risk-management abilities associated with mortgage debt
Deutsche Bank has settled with shareholders in a lawsuit accusing the lender of misrepresenting its risk-management abilities associated with mortgage debt.
The settlement was disclosed Thursday in a filing with the U.S. District Court in Manhattan, according to a Reuters report. The terms of the settlement were not disclosed.
Shareholders had accused the bank of misrepresenting its risk management and the quality of underwriting on mortgage debt it sold, according to Reuters. The shareholders claimed that those misrepresentations contributed to an 87% drop in the lender’s share price between 2007 and 2009.
The case isn’t a total win for the plaintiffs. In October, U.S. District Judge Katherine Forrest refused to grant the case class-action status, saying an expert hired by the plaintiffs had employed flawed methodology to determine whether Deutsche Bank shares were deficient.
In a separate settlement, Deutsche Bank agreed last month to pay $1.9bn over claims that it defrauded Fannie Mae and Freddie Mac in the sale of mortgage-backed securities, according to Reuters.
The settlement was disclosed Thursday in a filing with the U.S. District Court in Manhattan, according to a Reuters report. The terms of the settlement were not disclosed.
Shareholders had accused the bank of misrepresenting its risk management and the quality of underwriting on mortgage debt it sold, according to Reuters. The shareholders claimed that those misrepresentations contributed to an 87% drop in the lender’s share price between 2007 and 2009.
The case isn’t a total win for the plaintiffs. In October, U.S. District Judge Katherine Forrest refused to grant the case class-action status, saying an expert hired by the plaintiffs had employed flawed methodology to determine whether Deutsche Bank shares were deficient.
In a separate settlement, Deutsche Bank agreed last month to pay $1.9bn over claims that it defrauded Fannie Mae and Freddie Mac in the sale of mortgage-backed securities, according to Reuters.
