Deutsche Bank Beats Fiduciary Duty Claim in Ponzi-Scheme Case

Deutsche Bank AG convinced a federal court that a breach of fiduciary duty claim against it in a case involving a massive Ponzi scheme must be dismissed, but other claims against the bank will proceed to trial.

The case involved an alleged scheme to sell notes the plaintiffs believed were backed by real estate assets in Florida. The notes had a nominal value of $124 million but were heavily leveraged and worthless to secure debt.

The plaintiffs claimed that the note issuers used the proceeds from the notes to offset losses in other real estate investments. They also said that ...