Deutsche Bank AG was sued by a former employee seeking around €152 million ($165 million) in damages for alleged harm caused to his career by criminal proceedings in Italy related to Banca Monte dei Paschi di Siena SpA.
The ex-employee filed a claim in a German court in the second quarter of last year, the Frankfurt-based bank said in its annual report published Thursday, without naming the person.
Five other former Deutsche Bank employees involved in the Monte Paschi case also threatened to bring their own claims in an English court, the bank said.
In the original case, Monte Paschi managers were accused of colluding with Deutsche Bank staff to hide losses at the Italian lender by using complex derivatives trades, leading to a misrepresentation of the firm’s finances between 2008 and 2012.
After a conviction at the first instance in 2019, the six Deutsche Bank staff were fully acquitted in 2022 by a Milan appeals court which found that there were no grounds for trial. In October 2023, Italy’s supreme court upheld the acquittal, which is now therefore final.
Read More: Italy’s Court Upholds Acquittal of Ex Bankers in Paschi Case
Deutsche Bank considers the claims “to be entirely without merit and will defend itself against them robustly, including disputing inflated, unrealistic alleged losses.” Deutsche Bank said it isn’t disclosing whether it has established a provision or contingent liability as it could affect the outcome of the proceedings.
