Deutsche Bank Faces Criticism Over Proposed Settlement in Postbank Case

A lawyer representing plaintiffs in a protracted legal battle against Deutsche Bank has condemned the bank's proposed settlement as a "late low ball" offer. The ongoing litigation, which dates back to 2010, centers on allegations that Deutsche Bank underpaid for its acquisition of Postbank, a major German retail banking institution, during the late 2000s. Hundreds of claimants, including both institutional and private investors, are involved in various lawsuits related to the multi-stage deal. On Thursday, Deutsche Bank offered claimants a settlement of 36.50 euros ($40.12) per Postbank share. Jan Bayer, a senior partner at Bayer Krauss Hueber, expressed skepticism about the offer, suggesting it was a strategic move by the bank that had been in the works for months. Bayer indicated that the settlement is unlikely to be accepted, particularly given the tight deadline for claimants to respond, which falls on Monday. He criticized the timing of the offer, noting that it coincides with the holiday season, making it difficult for the law firm to reach all claimants. Bayer Krauss Hueber represents around 50 institutional claimants seeking approximately 1 billion euros in damages. Meanwhile, Deutsche Bank acknowledged the ongoing settlement discussions but emphasized that it has successfully disputed the plaintiffs' claims regarding the obligation to make a higher takeover offer. The legal challenges have significantly impacted Deutsche Bank's financial performance, contributing to a net loss reported in its second-quarter results, largely due to a substantial provision for Postbank-related cases.