FRANKFURT, Oct 13 (Reuters) – Deutsche Financial institution (DBKGn.DE) stated on Wednesday it might vigorously defend itself in opposition to a lawsuit by a Spanish resort group claiming 500 million euros ($578.3 million) in losses on derivatives merchandise.
The go well with is the newest growth in a problem that first got here to mild earlier this yr, and is a setback for the financial institution which has been working to revive its public picture.
At challenge are allegations that Deutsche Financial institution might have mis-sold dangerous funding financial institution merchandise to prospects in Spain and elsewhere, a matter that the financial institution is investigating internally learn extra
The Ibiza-based firm, Palladium Resort Group, stated in court docket paperwork dated Sept. 30 that Deutsche’s bankers offered merchandise figuring out that the resort executives “didn’t have any (or any vital) expertise in coping with advanced monetary spinoff transactions”.
Deutsche Financial institution stated in an announcement: “Palladium’s declare is with out basis and we will probably be vigorously defending ourselves in opposition to it. Palladium is a complicated investor with in depth expertise of utilizing derivatives.”
The lawsuit states that it issues lots of of transactions that occurred between 2014 and 2019, and that the corporate govt concerned had “positioned belief and confidence” within the Deutsche banker who marketed the offers.
“They have been exceptionally tough for anybody aside from a extremely refined and skilled market participant comparable to DB, and in apply inconceivable for a company consumer” like Palladium to evaluate, the go well with states.
Deutsche Financial institution stated it didn’t count on to see additional claims the scale of Palladium’s.
The Monetary Instances first reported concerning the go well with, which was filed in British court docket. Palladium declined to remark.
($1 = 0.8647 euros)
Reporting by Tom Sims; modifying by Maria Sheahan and Jason Neely
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