Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit against Deutsche Bank AG
March 30 2009 - 4:56PM
Business Wire
Coughlin Stoia Geller Rudman & Robbins LLP (�Coughlin
Stoia�) (http://www.csgrr.com/cases/deutschepfd760/) 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 the 7.60% Trust Preferred Securities
of Deutsche Bank Contingent Capital Trust III (the �Securities�)
(NYSE:DTK) pursuant or traceable to a materially false and
misleading registration statement and prospectus (collectively, the
�Registration Statement�) issued in connection with the February
2008 offering of the Securities (the �Offering�).
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
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/deutschepfd760/. 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 AG (�DB� or the �Company�),
certain of its subsidiaries, its senior insiders, its auditors and
the investment banks that underwrote the Offering 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 in February of 2008, DB consummated
the Offering pursuant to the false and misleading Registration
Statement, selling 70 million shares of the Securities at $25 per
share for proceeds of $1.75 billion. The Registration Statement
incorporated DB�s financial results for 2007 and statements in the
Company�s 2006 Annual Report on Form 20-F filed with the SEC.
After the Offering, 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, 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 price 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.
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 Offering (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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