A U.S. judge on Monday said Deutsche Bank must face part of a lawsuit claiming it deceived investors who bought more than $5.4bn of preferred securities by concealing its exposure to the fast-deteriorating subprime mortgage market.
Reuters reports that U.S. District Judge Deborah Batts in Manhattan rejected the bank's bid to dismiss claims with respect to roughly $2.55bn of securities sold in November 2007 and February 2008, court papers show.
She also dismissed claims with respect to $2.9bn of securities sold in May 2007, July 2007 and May 2008.
Deutsche Bank spokeswoman Amanda Williams declined to comment. Eric Niehaus, a lawyer for the plaintiffs, did not immediately respond to requests for comment.
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