Deutsche Bank loses suit over investor losses

AP News
Posted: Mar 22, 2011 9:13 AM
Deutsche Bank loses suit over investor losses

A German court ruled Tuesday that Deutsche Bank didn't sufficiently disclose the risks when selling one of its financial products to an investor.

The Federal Court of Justice said that Germany's biggest bank must pay the company, Ille Papier-Service GmbH, a little over euro540,000 ($765,000) in recompense.

Deutsche Bank said in a statement that it would examine the ruling in order to determine its response.

The ruling could influence the outcome of dozens of disputes between Deutsche Bank and small companies and local governments that entered into so-called interest-rate swap deals. The intention was to lower their interest payments.

The bank said that eight cases involving swaps are currently pending in court _ a number the company called "manageable."