Deutsche Bank settles with 60% of claimants in Postbank case

Deutsche Bank announced that it has made “significant” progress in its conversations with plaintiffs in the litigation concerning the takeover of Postbank and the offer price paid to former Postbank shareholders. The bank has reached agreements with more than 80 plaintiffs representing almost 60% of the total claims in this litigation, settling on the basis of 31 euros per share as proposed by the bank. Among the plaintiffs who agreed to a settlement is also the largest individual plaintiff in these proceedings, representing about one third of all claims. Deutsche Bank expects that the settlement agreements concluded so far will on average consume about 45% of the total provisions which were taken in relation to the claims by plaintiffs covered by the agreements; the remaining provisions related to these specific plaintiffs will be released. Deutsche Bank anticipates that this will lead to a positive impact of approximately EUR 430M on its pre-tax profit in the third quarter. Should Deutsche Bank enter into settlement agreements with additional plaintiffs, this could result in further positive implications on the total provisions taken for the litigation.