NEW YORK, March 21 A federal judge on Tuesday
said investors seeking to hold Deutsche Bank AG
liable for causing $3.1 billion of losses by failing to properly
monitor 10 trusts backed by toxic residential mortgages cannot
pursue their claims as a group.
U.S. District Judge Alison Nathan in Manhattan said
Belgium's Royal Park Investments SA/NV failed to show it was
more likely than not that the proposed class was "sufficiently
ascertainable" to justify class-action status.
The two-page denial was without prejudice, meaning Royal
Park and its law firm Robbins Geller Rudman & Dowd may seek
class certification later.
Nathan kept a decision outlining her reasoning under seal,
saying it may contain material that Royal Park believes should
not be made public. She asked both sides to advise within two
weeks whether all or part of that decision can be made public.
Class certification can make it easier for plaintiffs to
obtain higher recoveries at lower cost than if they sued
Royal Park accused Deutsche Bank National Trust Co, in its
role as bond trustee, of ignoring "widespread" deficiencies in
how loans underlying the trusts were underwritten and serviced,
and failing to require that lenders buy back defective loans.
The 10 trusts date from 2006 and 2007. Many investors have
in recent years sued trustees, as well as lenders and
underwriters, over losses on badly underwritten mortgages.
The case is Royal Park Investments SA/NV v. Deutsche Bank
National Trust Co, U.S. District Court, Southern District of New
York, No. 14-04394.
(Reporting by Jonathan Stempel in New York; editing by Grant