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Deutsche Bank investors can sue in U.S. over Epstein, Russian oligarch ties -Breaking


© Reuters. FILEPHOTO: Frankfurt, Germany. September 21, 2020. REUTERS/Ralph Orlowski/File Photograph

NEW YORK (Reuters), -A U.S. Judge Monday said that shareholders may sue Deutsche Bank AG (NYSE:) claims it concealed weaknesses in its internal controls when doing business with ultra-rich, risky clients such as Jeffrey Epstein and Russian oligarchs, along with people connected to terrorists.

U.S. District Judge Jed Rakoff of Manhattan stated that shareholders could try to show in their class action that German bank’s anti-money laundering and know-your customer controls failed and that the share price plummeted as more information became available.

Rakoff suggested that shareholders might also bring claims against John Cryan, John Cryan’s predecessor and Chief Executive Officer of Deutsche Bank (ETR:). A judge rejected claims against Deutsche Bank’s chief financial officer (ETR:) and his predecessor.

Deutsche Bank has not yet responded to comment requests. The lawyers representing the shareholders didn’t immediately reply to similar inquiries.

Investors in Deutsche Bank Securities from March 14, 2017 through May 12, 2020 are covered by the lawsuit.

Karimi v Deutsche Bank AG et al. U.S District Court, Southern District of New York. 22-02854.