(Bloomberg) -- Deutsche Bank AG has settled a lawsuit relating to its purchase of Postbank with a key plaintiff, marking another step on its path to draw a line under one of its longest-running legal sagas.
The settlement includes an additional €36.50 ($40.56) per share on the price Deutsche Bank paid at the time and also covers costs, the lender said in the statement without specifying what the amount for the costs is.
Effecten-Spiegel, the plaintiff, said in a separate release that it will receive a total of €8.8 million from the agreement. As Effecten-Spiegel owned 150,000 shares of Postbank, it will earn €58,66 per share from the settlement.
The agreement comes after a previous one last month with plaintiffs representing almost 60% of the total claims, which allowed Deutsche Bank to release a large chunk of the provisions it had made for the Postbank cases. It said at the time it would “review” its plans for investor payouts as a result.
Effecten-Spiegel the first former Postbank investor to contest the amount of money it was paid for its stake when Deutsche Bank made a formal takeover offer in 2010, according to the lender’s annual report.
It wasn’t until several years later that other ex-Postbank shareholders filed suits too, gradually pushing up the amount of money that was a stake for Deutsche Bank.
Effecten-Spiegel had a claim of €4.8 million on Deutsche Bank, its lawyer Jan Beyer said. It expects extraordinary income of about €8.8 million before taxes for the current financial year as a result of the settlement, it said in a filing.
A spokesman declined to comment on the bank’s payout plans when asked for an update on Thursday. Deutsche Bank’s shares rose as much 3.7%.
“Against the background of the plaintiff’s specific role in this litigation, a refund of costs has been agreed which accounts for the expenses in the long-running litigation,” Deutsche Bank said in its release.
A lawsuit brought by a different group of investors still hasn’t been settled and is scheduled to be discussed before a Cologne Court in October, a spokesman for Deutsche Bank said.
Deutsche Bank last quarter set aside €1.3 billion in provisions for the lawsuits from ex-Postbank investors, who argue the €25 per share they got paid was too low.
The settlement in August allowed Deutsche Bank to release some of those provisions, boosting third-quarter earnings by €430 million, it has said.
(Updates with payout details in second paragraph. An earlier version corrected the amount of the claim in the fifth paragraph.)
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