Cologne Court Rules Against Deutsche Bank in Postbank Case

Deutsche Bank has been ordered by the Cologne Higher Regional Court to compensate former Postbank shareholders more adequately following a long-standing dispute regarding the bank's 2010 acquisition of Postbank. The court's ruling upheld the claims of former investors who argued that Deutsche Bank underpaid during the takeover, and they are now entitled to additional payments beyond the original €25 per share they received. Deutsche Bank previously reached settlements with nearly 60% of the plaintiffs but will need to address the claims of the remaining shareholders, potentially affecting its financial outlook. In the third quarter of 2024, Deutsche Bank reported record profits, with pre-tax profits rising to €2.3 billion; however, this figure included a release of €440 million from litigation provisions related to the Postbank case. The bank's CEO, Christian Sewing, emphasized the importance of closing legacy litigation matters while maintaining strong financial performance. Deutsche Bank is considering appealing the ruling, which could further impact its ongoing legal challenges.