Deutsche Bank Says $1B CLO Fraud Claims Are Too Weak

Law360, New York (January 16, 2013, 7:25 PM EST) -- Deutsche Bank AG on Wednesday asked a New York federal court to throw out a private equity fund's suit claiming misconduct connected to a $1 billion collateralized loan obligation, arguing that the fraud allegations are too weak to proceed.

International private equity firm Arco Capital Corp.'s fraud suit against Deutsche relies on hindsight, the bank says.

“There are no allegations, no factual allegations, let alone allegations that give rise to an inference of scienter, that Deutsche knew going into this contract that it wasn't going to...
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