A Deutsche Bank AG (DBK) unit was sued over the sale of mortgage bonds by investors who claim $250 million in damages and are demanding that the bank repurchase loans underlying their securities.
DB Structured Products Inc. breached representations made to investors about the loans packaged and sold as securities, according to a summons filed yesterday in New York State Supreme Court in Manhattan.
The Deutsche Bank unit agreed to repurchase loans that breached representations, plaintiffs RMBS Recovery Holdings 4 LLC and VP Structured Products LLC said. They sued on behalf of all securities holders in a mortgage securitization trust.
“We intend to vigorously defend ourselves against this action and believe it is without merit,” Renee Calabro, a spokeswoman for Frankfurt-based Deutsche Bank, said in an e- mailed statement.
The case is RMBS Recovery Holdings 4 LLC v. DB Structured Products Inc., 650980-2012, New York State Supreme Court (Manhattan).
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