IBEW LOCAL 90 PENSION FUND vs. DEUTSCHE BANK | Robbins Geller Rudman & Dowd LLP Announces Class Action Suit Against Deutsche Bank AG
Just a FYI.
Robbins Geller Rudman & Dowd LLP Announces Class Action Suit Against Deutsche Bank AG
SAN DIEGO–(BUSINESS WIRE)–Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/deutschebank/) today announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the Southern District of New York on behalf of purchasers of Deutsche Bank AG (“Deutsche Bank”) (NYSE:DB) ordinary shares during the period between January 3, 2007 and January 16, 2009 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Darren Robbins of Robbins Geller at 800-449-4900 or 619-231-1058, or via e-mail firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online athttp://www.rgrdlaw.com/cases/deutschebank/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
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’s business and financial results and concealed the Company’s 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’s 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’s 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’s books caused by the high amount of non-collectible mortgages included in the Company’s portfolio; (b) Deutsche Bank’s 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’s 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.
Robbins Geller, a 180-lawyer firm with offices in San Diego, San Francisco, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Robbins Geller Web site (http://www.rgrdlaw.com) has more information about the firm.