• Shareholders can sue Deutsche Bank AG (DBKGn.DE) for allegedly doing business with risky, ultra-rich clients like the offender Jeffrey Epstein and Russian oligarchs.
• Judge Jed Rakoff in Manhattan said shareholders may try to prove that the German bank was aware its know-your-customer and anti-money laundering controls were ineffective.

A U.S. judge on Monday said investors can sue Deutsche Bank AG (DBKGn.DE), asserting it concealed deficiencies in inside controls while working with hazardous, super-rich clients like the lender Jeffrey Epstein, Russian oligarchs, and individuals connected to psychological oppression.

U.S. Region Judge Jed Rakoff in Manhattan said investors might attempt to demonstrate in their proposed class activity that the German bank’s know-your-client and hostile to illegal tax avoidance controls were ineffectual, and that its portion cost fell as reality became known.

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Rakoff said investors may likewise seek after claims against the bank’s Chief Executive Christian Sewing and his ancestor John Cryan.

The adjudicator excused claims against Deutsche Bank’s CFO and his ancestor.

Deutsche Bank didn’t promptly answer demands for input. Attorneys for the investors didn’t quickly answer comparative solicitations.

The claim covers financial backers in Deutsche Bank protections from March 14, 2017 to May 12, 2020.

The case is Karimi v Deutsche Bank AG et al, U.S. Area Court, Southern District of New York, No. 22-02854.