DEUTSCHE BANK
Deutsche Boerse: DBK Meeting Date: 5/22/2014
Just when shareholders thought Deutsche Bank’s long-standing legal battle with the Kirch family had come to a close, reports have surfaced that co-CEO Jürgen Fitschen and others may be charged as complicit in attempted deception in relation to the case. The twelve-year-long legal dispute stemmed from televised remarks by former Deutsche Bank CEO Rolf Breuer, who publicly questioned the credit worthiness of Leo Kirch’s ‘KirchGruppe’ media conglomerate. Claimants argued this negative publicity ruined the reputation of the enterprise and ultimately led to its collapse. In February 2014, the Company reached a settlement agreement with the Kirch heirs, by which it would pay damages of over €775 million. Weeks after this announcement however, it came to light that testimony given by some former managers as part of the case may have been inaccurate. This information was reportedly presented at a management board meeting in February 2012 by the Company’s legal department, which was provided as a reason why the Company should settle the Kirch case out of court. Company co-CEO Fitschen was reportedly party to this information so any charge against him would be based on the notion that, with full knowledge of past false statements, Mr. Fitschen kept the information secret. In light of these new accusations, along with other ongoing litigation, shareholders may think carefully about whether they wish to ratify acts of the board. In Germany, ratifying the acts of the management board is a vote of confidence, but does not release its members from liability for their actions.
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