{"id":5426,"date":"2013-04-04T00:00:00","date_gmt":"2013-04-04T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2013\/04\/rmbs_lawsuit_against_deutsche"},"modified":"2022-05-02T15:48:41","modified_gmt":"2022-05-02T20:48:41","slug":"rmbs-lawsuit-against-deutsche","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/rmbs-lawsuit-against-deutsche\/","title":{"rendered":"RMBS Lawsuit Against Deutsche Bank Can Proceed, Says District Court"},"content":{"rendered":"<p>The U.S. District Court for the Southern District of New York is refusing to throw out the shareholder securities fraud lawsuit filed against Deutsche Bank (DB) and three individuals over their alleged role in marketing residential mortgage-backed securities and mortgage-backed securities before the economic crisis. The court found that the plaintiffs, led by Building Trades United Pension Fund, the Steward International Enhanced Index Fund, and the Steward Global Equity Income Fund, provided clear allegations that omissions and misstatements were made and there had been a scam with intent to defraud.<\/p>\n<p>The RMBS lawsuit accuses Deutsche Bank of putting out misleading and false statements regarding its financial health prior to the financial crisis. The plaintiffs contend that the financial firm created and sold MBS it was aware were toxic, while overstating how well it could handle risk, and did not write down fast enough the securities that had dropped in value. Because of this, claim the shareholders, the investment bank\u2019s stock dropped 87% in under 24 months.<\/p>\n<p>U.S. District Judge Katherine Forrest said that the plaintiffs did an adequate job of alleging that even as Deutsche Bank talked in public about its low risk lending standards, senior employees at the firm were given information showing the opposite. She said that there are allegations of recklessness that are \u201cplausible.\u201d The district court also found that the complaint adequately alleged control person and antifraud violations involving defendants Chief Executive Officer Josef Ackermann, Chief Financial Officer Anthony Di Iorio, and Chief Risk Officer Hugo Banziger, who are accused of making material misstatements about the risks involved in investing in CDOS and RMBS while knowing they were less conservative than what investors might think. Claims against defendant ex-Supervisory Board Chairman Clemens Borsig, however, were thrown out due to the plaintiffs\u2019 failure to allege that he made an actual misstatement.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/rmbs-lawsuit-against-deutsche\/\"  title=\"Continue Reading RMBS Lawsuit Against Deutsche Bank Can Proceed, Says District Court\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. District Court for the Southern District of New York is refusing to throw out the shareholder securities fraud lawsuit filed against Deutsche Bank (DB) and three individuals over their alleged role in marketing residential mortgage-backed securities and mortgage-backed securities before the economic crisis. The court found that the plaintiffs, led by Building Trades [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3818,3752,3757],"tags":[],"class_list":["post-5426","post","type-post","status-publish","format-standard","hentry","category-deutsche-bank","category-financial-firms","category-mortgagebacked-securities"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>RMBS Lawsuit Against Deutsche Bank Can Proceed, Says District Court &#8212; Investor Lawyers Blog &#8212; April 4, 2013<\/title>\n<meta name=\"description\" content=\"The U.S. District Court for the Southern District of New York is refusing to throw out the shareholder securities fraud lawsuit filed against Deutsche &#8212; April 4, 2013\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/rmbs-lawsuit-against-deutsche\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"RMBS Lawsuit Against Deutsche Bank Can Proceed, Says District Court &#8212; 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