German lender Deutsche Bank (NYSE:DB) has resolved a lawsuit accusing it of supporting Jeffrey Epstein’s illegal people trafficking activities. The banker will pay up to $75 million in fines to settle the case with a woman who claimed that Deutsche Bank made money from Epstein’s illegal business. The settlement amount may be shared by several women (roughly up to $5 million each) who have been victims of Epstein’s abuse.
The case against DB was first filed in November 2022, along with two other cases charging American rival JP Morgan Chase (NYSE:JPM). The Financial Times stated that the woman claimed Deutsche Bank “chose profit over following the law,” knowing that it would “earn millions of dollars from facilitating Epstein’s sex trafficking.”
In 2013, DB signed Epstein as a client, and he brought with him over 40 new accounts for the bank. However, due to the numerous claims of sexual assault against Epstein in 2018, the bank dismissed him as a client. Since that time, DB has hired more than 1,900 individuals for internal compliance control.
The lawsuit has been ongoing for over ten years. Additionally, Deutsche Bank made a payment of $150 million for its association with Epstein to the New York State Department of Financial Services in 2020. The banker tried hard to push off the case this time but ended up losing again. The judge noted that Deutsche Bank advised Epstein on how to maneuver withdrawals to evade notice and failed to file suspicious activity reports.
Is Deutsche Bank a Buy or Sell?
On TipRanks, Deutsche Bank has a Moderate Buy consensus rating based on eight Buys, five Holds, and two Sell ratings. Also, the average Deutsche Bank price target of $15.05 implies a nearly 42% upside potential to current levels. Meanwhile, DB stock has lost 9.5% so far this year.
