Deutsche Bank, a German lender, has been embroiled in a long-running legal battle over its acquisition of German retail banking giant Postbank in the late 2000s. The crux of the challenge against the bank is that it underpaid for the acquisition, leading to a legal battle spanning over a decade. The proposed settlement put forward by Deutsche Bank has been criticized by a lawyer representing the plaintiffs as a “late low ball” offer.
The proposed settlement of 36.50 euros per Postbank share has been met with skepticism by the plaintiffs’ lawyer, who has called it a strategic move by the bank to avoid a court decision scheduled for the following week. The offer, which is intended to be accepted by all claimants, has already been rejected by one, indicating that the likelihood of the settlement going through is slim. The timing of the offer, presented during the holiday season, has also raised concerns about the ability to reach all claimants by the deadline.
Bayer Krauss Hueber, the law firm representing around 50 institutional claimants in the case, has expressed doubts about the legitimacy of the offer and the likelihood of a settlement being reached. The firm believes that the bank’s goal of avoiding the court decision is not feasible, and that the timing and nature of the offer reflect poorly on the bank’s intentions.
Deutsche Bank, in response to the criticism, stated that they are in settlement discussions with various groups of plaintiffs in the Postbank takeover proceedings. However, they did not provide further details on the status of these talks. The bank’s credibility has been called into question due to the ongoing litigation and the impact it has had on the bank’s financial performance.
The Postbank litigation has had a significant impact on Deutsche Bank’s financial performance, as evidenced by the net loss reported in the second-quarter results due to provisions made for the cases. The uncertainty surrounding the litigation has also led to a decrease in investor confidence, as reflected in the fluctuating share prices of the bank.
The proposed settlement from Deutsche Bank in the long-running case involving the acquisition of Postbank has been met with criticism and skepticism from the plaintiffs’ lawyer and the legal representatives involved. The impact of the litigation on the bank’s financial performance and reputation highlights the importance of reaching a fair and transparent resolution to the case. The future of the settlement remains uncertain, as the conditions and responses from the claimants continue to evolve.
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