Deutsche Bank Hit With Suit Over Bad Mortgages

Law360, New York (June 22, 2011, 1:05 PM EDT) -- Deutsche Bank AG was hit with a proposed class action in New York on Tuesday by a group of shareholders who claim the financial firm hid its exposure to billions of dollars worth of bad home loans and ignored a subsidiary's reckless lending.

Piggybacking off of the U.S. Department of Justice's $1.1 billion suit against Deutsche Bank, the shareholders claim the bank's false and misleading statements artificially inflated its stock price to a high of $159.59. After the 2008 housing crisis forced the firm to reveal...
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