The U.S. Supreme Court revived a $22.5 billion class action against Deutsche Bank AG on Monday after statements had been made about its exposure to risky mortgage-backed securities and after finding that the original claim should've been reviewed in light of the Court’s recent Omnicare ruling.
In a unanimous ruling in March, the Supreme Court held that Omnicare Inc. was not liable for statements of opinion made by their executives, which turned out to be false.
In this case, the plaintiff Belmont Holdings Corp. argued that its claims were nearly identical to the plaintiff in Omnicare. The Supreme Court granted Belmont’s petition for a writ of certiorari, but vacated a lower court’s decision to dismiss the claim, remanding the case back to the 2nd Circuit for further consideration.
Order Shows How Ruling Affects Securities Litigation
This order is just the latest sign of how the Omnicare ruling is starting to shake up securities litigation, with Ernst & Young recently settling over allegations that over $21 million was lost because of an alleged active concealment of Lehman Brothers’ subprime exposure risk.
Investment Misrepresentation and How it Affects You
The attorneys at Dimond Kaplan & Rothstein, P.A. represent investors who have been defrauded in front of the SEC and all levels of state and federal court. If you have made investments based on knowingly false statements with Deutsche Bank or anyone else, you may have certain legal rights that require your immediate attention.
Call a Securities Fraud Attorney Today
Contact us to schedule an appointment or consultation today to review your rights and options.