Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit Against Deutsche Bank AG
April 17 2009 - 6:53PM
Business Wire
Coughlin Stoia Geller Rudman & Robbins LLP (�Coughlin
Stoia�) (http://www.csgrr.com/cases/deutschepreferred/) today
announced that a class action has been commenced in the United
States District Court for the Southern District of New York on
behalf of persons who acquired preferred securities pursuant or
traceable to a materially false and misleading registration
statement (the �Registration Statement�) filed with the SEC on
October 10, 2006 by Deutsche Bank AG (�DB�). These preferred
securities include the 6.375% Noncumulative Trust Preferred
Securities of Deutsche Bank Capital Funding Trust VIII (NYSE:DUA);
the 6.55% Trust Preferred Securities of Deutsche Bank Contingent
Capital Trust II (NYSE:DXB); the 6.625% Noncumulative Trust
Preferred Securities of Deutsche Bank Capital Funding Trust IX
(NYSE:DTT); the 7.35% Noncumulative Trust Preferred Securities of
Deutsche Bank Capital Funding Trust X (NYSE:DCE); the 7.60% Trust
Preferred Securities of Deutsche Bank Contingent Capital Trust III
(NYSE:DTK); and the 8.05% Trust Preferred Securities of Deutsche
Bank Contingent Capital Trust V (NYSE:DKT) (collectively, the
�Securities�) offered in October 2006, May 2007, July 2007,
November 2007, February 2008 and May 2008, respectively (the
�Offerings�).
If you wish to serve as lead plaintiff, you must move the Court
no later than 60 days from February 24, 2009. 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 Coughlin Stoia at 800-449-4900 or 619-231-1058,
or via e-mail at djr@csgrr.com. If you are a member of this class,
you can view a copy of the complaint as filed or join this class
action online at http://www.csgrr.com/cases/deutschepreferred/. 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 DB, certain of its subsidiaries, its
senior insiders, the investment banks that underwrote the Offerings
and DB�s auditors with violations of the Securities Act of 1933. DB
is an investment bank headquartered in Frankfurt am Main, Germany,
which has offices in the United States.
The complaint alleges that from October of 2006 through May of
2008, DB consummated the Offerings pursuant to the false and
misleading Registration Statement, selling over 248 million shares
of the Securities at $25 per share for proceeds of more than $6.2
billion.
After the Offerings, on January 14, 2009, DB issued a press
release announcing disappointing fourth quarter 2008 financial
results, including a loss after taxes of �4.8 billion for the
fourth quarter of 2008, reflecting market conditions that severely
impacted results in the sales and trading businesses, �most notably
in Credit Trading including its proprietary trading business,
Equity Derivatives and Equities Proprietary Trading.� As a result
of this disclosure, the prices of the Securities fell
dramatically
According to the complaint, the true facts which were omitted
from the Registration Statement were: (a) the Company failed to
properly record provisions for credit losses, residential
mortgage-backed securities, commercial real estate loans, and
exposure to monoline insurers; (b) the Company�s internal controls
were inadequate to prevent it from improperly recording provisions
for credit losses, residential mortgage-backed securities,
commercial real estate loans, and the Company�s exposure to
monoline insurers; (c) the Company�s internal risk management
systems were inadequate to limit the Company�s exposure to credit
trading, equity derivatives, and proprietary equity trading; and
(d) the Company was not as well capitalized as represented, and,
notwithstanding the billions of dollars raised in the Offerings,
the Company would have to raise an additional �10 billion by
selling equity in the Company to the German government.
Plaintiff seeks to recover damages on behalf of all persons who
acquired the Securities pursuant or traceable to the Registration
Statement issued in connection with the Offerings (the �Class�).
The plaintiff is represented by Coughlin Stoia, which has expertise
in prosecuting investor class actions and extensive experience in
actions involving financial fraud.
Coughlin Stoia, a 190-lawyer firm with offices in San Diego, San
Francisco, Los Angeles, 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 Coughlin Stoia Web site
(http://www.csgrr.com) has more information about the firm.
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