Judge Jed Rakoff of the Southern District of New York issued an opinion last week on a motion to dismiss in a putative class action securities fraud case against Deutsche Bank (“DB”) and several current and former bank executives. The opinion, while technically a “split decision,” allows the bulk of plaintiffs’ claims to proceed to the class certification phase – dismissing claims only with regard to the bank’s current and former CFOs.
The case against DB and its current and former CEO now proceeds to the class certification phase – which, if the Court continues at its current pace, may culminate sooner rather than later. Aside from continuing to keep DB in the headlines for all the least desirable reasons, this case may continue to serve as an ongoing object lesson in the costs – legal, financial, reputational – of talking the talk, but potentially failing to walk the walk, with regards to anti-money laundering (“AML”) and “Know Your Customer” (“KYC”) compliance.
Continue Reading SDNY Allows Putative Class Action Securities Fraud Case Based on Alleged AML Deficiencies to (Mostly) Proceed