| Company: | Deutsche Bank AG |
| Ticker Symbol: | DB |
| Class Period: | Jan-3-07 to Jan-16-09 |
| Date Filed: | Jun-21-11 |
| Lead Plaintiff Deadline: | Aug-20-11 |
| Court: | Southern District of New York |
| Allegations: | |
The complaint charges Deutsche Bank and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Deutsche Bank is a global investment bank.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company' business and financial results and concealed the Company' 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' shares declined as it reported billions of dollars in losses, many of which were directly or indirectly related to mortgage-backed securities. Recently, the U.S. Department of Justice sued Deutsche Bank for misrepresentations about its mortgage loans.
On January 16, 2009, after Deutsche Bank issued an update on its fourth quarter 2008 performance, Fitch Ratings placed Deutsche Bank' 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.
According to the complaint, 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' books caused by the high amount of non-collectible mortgages included in the Company' portfolio; (b) Deutsche Bank' 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' 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.
Plaintiff seeks to recover damages on behalf of all purchasers of Deutsche Bank ordinary shares during the Class Period (the "Class"). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
