Deutsche Bank is dismissed from large U.S. mortgage debt lawsuit

A U.S. judge has dismissed Deutsche Bank AG (DBK.DE) as a defendant in one of two long-running cases accusing issuers and banks of deceiving investors about the risks of billions of dollars of residential mortgage-backed securities that soured during the financial crisis. U.S. District Judge Harold Baer in Manhattan on Wednesday said a June 27 decision by the 2nd U.S. Circuit Court of Appeals meant that intervening plaintiffs could not join a case over the RALI Mortgage Asset-Backed Pass-Through Certificates issued in 2006 and 2007 by the former Residential Capital LLC. Baer dismissed claims arising from six offerings underwritten by Deutsche Bank, and let stand claims tied to offerings underwritten by Citigroup Inc (NYS:C) and Goldman Sachs Group Inc (GS). The decision did not affect claims in the RALI case against UBS AG (UBSN.VX).


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