Deutsche Bank Legal Shock Upends CEO Sewing’s Buyback Plan (2)

As the working week drew to a close in Frankfurt, Deutsche Bank AG’s Christian Sewing was on a roll. Upbeat first-quarter earnings had sent the lender’s shares to the highest level since 2017, bolstering a perception that the firm had finally shaken off its scandal-prone past.

The good vibes didn’t last long. A day after investors had been told to expect higher payouts on Thursday, Deutsche Bank made the announcement that it’s putting aside as much as €1.3 billion ($1.4 billion) in legal provisions. That was the result of a surprise court hearing which could favor former shareholders of ...