Deutsche Bank’s attempt to settle with shareholders over the underpayment related to the acquisition of Postbank has been met with sharp criticism from the plaintiffs’ lawyer. The offer of 36.50 euros per Postbank share has been labeled as a “crackhead” offer that is deemed “dead on arrival” by Jan Bayer, the lawyer representing the plaintiffs. This proposed settlement, if accepted, would mark a significant turning point in the long-standing legal battle that has plagued Deutsche Bank for years.
The acquisition of Postbank by Deutsche Bank dates back to the 2008 global financial crisis when the bank sought to expand its presence in Germany and secure a stable revenue stream. Despite the initial intentions behind the acquisition, Postbank has since become a thorn in Deutsche Bank’s side, attracting consumer complaints, regulatory scrutiny, and expensive lawsuits. The legal disputes surrounding the underpayment of former Postbank shareholders have lingered in the courts for years, creating a cloud of uncertainty over Deutsche Bank’s financial future.
In light of a recent court decision in Cologne that favored the former shareholders’ case, Deutsche Bank was prompted to set aside 1.3 billion euros in anticipation of potential claims. This unexpected provision led to the bank forgoing plans to reward investors and repurchase its own shares, resulting in a quarterly loss and breaking a profitability streak. The pending court hearing in Cologne, scheduled for next Wednesday, holds the potential to deliver a verdict in the case and bring closure to the ongoing legal battle.
Jan Bayer, the lawyer representing the shareholders, has advised his clients to reject Deutsche Bank’s settlement offer, citing that it falls significantly short of the claims’ actual value. The proposed amount, which Bayer estimates to be less than half of what is owed to the shareholders, has been deemed inadequate and unjust. His recommendation to wait for the court’s decision next Wednesday highlights the plaintiffs’ determination to seek fair compensation for the underpayment resulting from the Postbank acquisition.
Deutsche Bank’s attempt to resolve the legal dispute with Postbank shareholders through a settlement has hit a roadblock due to the perceived inadequacy of the proposed offer. The outcome of the upcoming court hearing in Cologne will undoubtedly play a crucial role in determining the final resolution of the case and the financial implications for Deutsche Bank. As the legal battle continues, the reputation and future of Germany’s largest bank remain at stake.