The proposed settlement from Deutsche Bank in a long-running case has been met with criticism from a lawyer representing the plaintiffs. Described as a “late low ball” offer, the crux of the challenge against the German lender revolves around the underpayment for its acquisition of Postbank. Legal action has been ongoing since 2010, with hundreds of claimants involved, including institutional and private investors. The offer of 36.50 euros per Postbank share was deemed inadequate, and the deadline for claimants to respond is looming.
The lawyer representing the plaintiffs, Jan Bayer, has criticized the bank’s tactics of offering a last-minute deal despite previous warnings that it may not be effective. The offer is contingent on the acceptance of all claimants, but one has already rejected it, casting doubt on the likelihood of a successful settlement. Bayer also raised concerns about the timing of the offer, coming during the holiday season, which may hinder the communication with all claimants before the deadline.
Bayer Krauss Hueber, the law firm representing around 50 institutional claimants, is actively involved in various proceedings related to the case, pursuing approximately 1 billion euros in claims. Despite the bank’s reassurances of being in settlement discussions with different plaintiff groups, the uncertainty surrounding the outcome of the case persists. The litigation has had a significant impact on Deutsche Bank’s financial performance, with a net loss reported in the second-quarter results due to a provision made for the Postbank cases.
The prolonged legal battle over the Postbank acquisition has taken a toll on Deutsche Bank, leading to fluctuations in its stock performance. The Higher Regional Court of Cologne’s dismissal of all claims in 2020 was overturned by Germany’s Federal Court of Justice in 2022, signaling the complexity and contentious nature of the case. Deutsche Bank’s assertion of successfully disputing the plaintiffs’ claims and invalidating them has not deterred the ongoing legal challenges and uncertainties surrounding the settlement offer.
The contentious case against Deutsche Bank highlights the complexities and challenges inherent in corporate acquisitions and legal disputes. The proposed settlement has failed to appease the plaintiffs, raising questions about the bank’s tactics and the timing of the offer. With multiple institutional and private investors involved, the outcome of the case remains uncertain, impacting Deutsche Bank’s financial performance and reputation. As the legal battle continues, the resolution of the Postbank acquisition saga remains elusive, with court decisions and conflicting claims adding to the complexity of the situation.
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