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Higher Regional Court of Cologne: Deutsche Bank Must Significantly Compensate Former Postbank Shareholders

The Higher Regional Court of Cologne obliges Deutsche Bank to compensate former Postbank shareholders significantly more, further exacerbating the long-standing legal dispute and the financial burdens of the group.

Eulerpool News Oct 24, 2024, 6:49 PM

The Higher Regional Court of Cologne has ruled that Deutsche Bank must make a significantly higher payment to former shareholders of Postbank following the takeover in 2010. The plaintiffs demanded 57.25 euros per Postbank share, while the bank paid only 25 euros per share in 2010. The court fully upheld the claims, ordering a substantial back payment accordingly.

The decision follows years of legal disputes that have strained the relationship between Deutsche Bank and the former shareholders. In April 2024, the Higher Regional Court of Cologne first suggested that the Postbank shareholders might be entitled to more than the originally paid 25 euros per share. Subsequently, Deutsche Bank formed provisions totaling 1.3 billion euros, about 440 million euros of which were already released after a settlement. This partial provision led to a significant profit jump in the third quarter, but considerably impacted the company's overall figures.

The German Bank plans to appeal the judgment with a non-admission complaint to the Federal Court of Justice. In a statement, the financial institution said it intends to analyze the judgment and its implications. "The German Bank has made provisions that fully cover the plaintiffs' outstanding claims plus the accrued interest," the bank stated. "Additional burdens can only arise from further accruing interest in the amount of approximately two million euros per month.

The legal dispute highlights the complex licensing and acquisition regulations in the financial industry and presents Deutsche Bank with significant financial obligations. Experts warn that similar cases could increasingly occur in the future, which would further strain the financial stability of large banks.

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