German multinational financial giant Deutsche Bank is facing a €500-million lawsuit for supposedly mis-selling risky foreign exchange derivatives and causing losses.
- Some of the complainants are part of the Palladium Hotel Group, the seventh-largest hotel chain in Spain. It claims that Deutsche took advantage as the hospitality chain was naive regarding the derivatives, which it did not understand.
- The claim was filed last month to London’s High Court, adding to accusations that Deutsche offered financial products to several companies in Spain and caused them financial troubles.
- Deutsche said the Palladium lawsuit was an isolated case “without foundation”, and it would defend itself vigorously. It said it sees no reason to expect any more similar cases moving forward.
- Other claims have caused two senior Deutsche bankers to step out of office, as well as out-of-court settlements, including a €10-million payout to J Garcia Carrión, the biggest wine exporter in Europe.
Deutsche is looking into the claims but noted that only a “limited number” of clients are affected by the investigations.
DB is down 3.28%.
Source: Financial Times