Deutsche Bank, Loreley Settle $440M CDO Suit

Law360, New York (March 1, 2012, 12:13 PM EST) -- Loreley Financing entities and Deutsche Bank AG resolved a lawsuit Wednesday in New York accusing the German financial giant of duping investors into buying $440 million worth of collateralized debt obligations that bankers allegedly called "crap" and "pigs" behind closed doors.

Deutsche and the Loreley companies — special purpose entities formed to invest in CDOs — submitted a stipulation to the state court agreeing to put an end to the action with prejudice.

Representatives for the parties did not immediately return requests for comment Thursday....
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