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Deutsche Bank in a $26.3 million shareholder settlement against Epstein, ties to Russian tycoon According to Reuters



© Reuters. FILE PHOTO: The Deutsche Bank logo is pictured above a company’s office in London, Britain July 8, 2019. REUTERS / Simon Dawson / File Photo

By Jonathan Stempel

NEW YORK (Reuters) – Deutsche Bank AG (NYSE:) has agreed to pay $26.25 million to settle a US shareholder lawsuit accusing the German bank of lax oversight while doing business with ultra-rich, risky clients like Jeffrey Epstein and Russian oligarchs.

The all-cash preliminary settlement filed Friday in federal court in Manhattan requires the approval of US District Judge Jed Rakoff, who in June allowed the proposed class action lawsuit to proceed. export.

Shareholders led by Yun Wang, who traded shares of Deutsche Bank (ETR:) in 2018 and 2020, claim that the bank knows your customer and that its anti-money laundering controls are ineffective. results and its stock price fell as problems emerged. .

Deutsche Bank denies wrongdoing in agreeing to the settlement. Chief executive officer Christian Sewing and his predecessor John Cryan are also defendants, and also denied wrongdoing.

A bank spokesman declined to comment. Sewing since taking over in 2018 has tried to show investors that Deutsche Bank has addressed its internal control shortcomings.

The lawsuit is Deutsche Bank’s fault for working with Epstein, the late financier and sex offender, and with the Estonian branch of Danske Bank, which was embroiled in a money-laundering scandal.

New York’s Department of Financial Services fined Deutsche Bank $150 million in July 2020 for its ties to Epstein and Danske Estonia.

Shareholders also objected to Deutsche Bank accepting financiers like billionaire Roman Abramovich as clients, in what they called the bank’s “relentless pursuit of profits”.

Friday’s payment covers Deutsche Bank investors in the United States between March 14, 2017 and September 18, 2020.

Plaintiffs’ attorneys said the $26.25 million settlement was 49.4% of existing “recoverable” damages, compared with an average of 1.8% in class action lawsuits. settlement in 2021.

Attorneys can seek up to a third of the settlement fund for legal fees.

The case is Karimi v Deutsche Bank AG et al., United States District Court, Southern District of New York, no. 22-02854.



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