Deutsche Bank settled Jeffrey Epstein’s $26 million check case RS News

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Deutsche Bank AG agreed to pay $26.25 million to settle a lawsuit accusing it of misleading investors about how it vetted clients, including convicted sex offender Jeffrey Epstein and Russian oligarchs.

The proposed settlement filed Friday in Manhattan federal court resolves a class-action lawsuit filed in 2020 over the bank’s “Know Your Customer” practices and procedures.

The case targeted the bank’s business ties to Epstein, who died in prison in 2019, and oligarchs, including billionaire Roman Abramovich.

Investors alleged that the bank’s false statements about its audit procedures inflated the stock price illegally and caused the stock to fall when information about its client list came to light.

In June, a judge denied the bank’s request to dismiss the investors’ complaint. The bank pleaded not guilty, according to the settlement agreement.

The settlement was previously reported by Reuters.

In 2020, the bank agreed to pay New York’s banking regulator $150 million for a series of compliance failures that included half a decade of lax oversight of Epstein’s financial operations.

The case is Karimi v. Deutsche Bank AG, 22-cv-02854, US District Court, Southern District of New York (Manhattan).

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