Deutsche Bank Sued for Fraud in Connection with US$535 Million in RMBS

Orrick - Finance 20/20
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In a lawsuit filed in New York State Court on August 5, Royal Park Investments SA/NV (RPI) alleged that several Deutsche Bank affiliates fraudulently induced it to invest in more than US$535 million worth of RMBS in connection with 18 different offerings. RPI alleges that the offering documents for the RMBS contained material misrepresentations and omissions concerning compliance with underwriting guidelines, loan-to-value ratios, owner occupancy rates, credit ratings, and transfer of title of the underlying mortgage loans. RPI further alleges that Deutsche Bank knew its representations were false but concealed that information and even used it to take a short position on different RMBS while still marketing these RMBS certificates to RPI as a good investment. RPI asserts claims for common law fraud, fraudulent inducement, aiding and abetting fraud, negligent misrepresentation, and rescission based on mutual mistake. Complaint.

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