U.S. District Judge Jesse Furman in Manhattan, N.Y., on Jan. 23 denied Deutsche Bank AG's request to dismiss a lawsuit related to losses on RMBS, Reuters reported the same day.
The proposed class-action case claims the bank failed to discharge its duties as trustee of 62 trusts, which issued bonds backed by about $90.3 billion of home loans. The judge refused to dismiss representations and warranties, servicer-notification and event-of-default claims, according to the report, but did dismiss conflict-of-interest accusations against the bank.
The investors include portfolios from BlackRock Inc. and Pacific Investment Management Co. LLC and funds run by Prudential Investments LLC. The lawsuit seeks to recover "significant monetary damages." The next hearing is Feb. 2, when the judge would explain his reasoning and by which time, he said, he would review additional claims, Reuters reported.
Deutsche Bank CEO John Cryan reportedly said at the World Economic Forum in Davos, Switzerland, that while the bank has made "a lot of progress" on regulatory and litigation matters, "there's still some uncertainty" on that front. He said there are other pending cases that would have to be settled, though they are expected to be smaller than the $7.2 billion settlement the bank struck with U.S. authorities to end claims that it missold MBS.
Wertheim Jewish Education Trust LLC recently sued Deutsche Bank for allegedly refusing to return up to $3 billion to the heirs of a wealthy German family.