Deutsche Bank in court because of its business with Epstein, terrorist organizations, Mexican drug cartels etc.
In a class action, investors aim to show that the Deutsche Bank [DM] know-your-client and hostility to illegal tax avoidance controls were ineffectual. As a result, DB's stock allegedly lost value, harming investors.
The Complaint alleges that
- Eleven confidential witnesses ("CWs") who worked in DB's compliance functions have informed counsel that
- DB's AML & KYC procedures did not work as described.
- The Bank's executives and management board routinely overruled compliance staff so that the Bank's wealth management business could commence or continue relationships with high-risk, ultra-rich clients, such as
- Russian oligarchs,
- The convicted sex trafficker Jeffrey Epstein,
- Founders of terrorist organizations,
- People associated with Mexican drug cartels, and
- People suspected of financing terrorist organizations.
- When these relationships were revealed, DB's stock allegedly lost value, harming investors.
Judge Jed Rakoff in Manhattan said
- Shareholders may try to prove that the German Bank was aware its know-your-customer and anti-money laundering controls were ineffective.
- Investors can sue Deutsche Bank AG (DBKGn.DE), asserting it concealed deficiencies in inside controls while working with hazardous, super-rich clients like the lender Jeffrey Epstein, Russian oligarchs, and individuals connected to psychological oppression.
- In their proposed class activity, investors might attempt to demonstrate that the German Bank's know-your-client and hostility to illegal tax avoidance controls were ineffectual and that its portion cost fell as reality became known.
- Investors may likewise seek after claims against the Bank's Chief Executive Christian Sewing and his ancestor John Cryan.
The adjudicator excused claims against Deutsche Bank's CFO and his ancestor.
Deutsche Bank didn't promptly answer demands for input. Attorneys for the investors didn't quickly answer comparative solicitations
The claim covers financial backers in Deutsche Bank protections from March 14, 2017 to May 12, 2020.
The case is Karimi v Deutsche Bank AG et al, US Area Court, Southern District of New York, No. 22-02854.