(Bloomberg) -- M.M. Warburg & Co. lost a lawsuit over whether Deutsche Bank AG should pay a 63 million-euro ($70 million) tax bill related to the Cum-Ex scandal. 

The Frankfurt Appeals Court on Wednesday dismissed the suit, a spokeswoman for the tribunal said by phone. The court will disclose details of the ruling later today, she said. Warburg argued that Deutsche Bank was responsible for transferring the money to the tax authorities about a decade ago in its role as a custodian for the short seller in the disputed transactions.

Both banks are embroiled in the German Cum-Ex investigations as Cologne prosecutors are looking at their roles in the scandal. Warburg’s transactions were under review in the first Cum-Ex trial in Bonn that ended with convictions of a pair of British traders two years ago. That trial centered on more than 30 deals in which managers at Hamburg-based Warburg were involved.

Cum-Ex trades, named for the Latin term for “With-Without,” took advantage of German tax laws that seemed to allow multiple investors to claim refunds on a dividend levy that was paid only once. The practice ended in 2012 when Germany revised its rules and the trades may have cost taxpayers more than 10 billion euros.

Warburg said it will consider whether to challenge the judgment as it’s contradicting rulings in criminal cases.

The case is: OLG Frankfurt am Main, 17 U 108/20.

©2022 Bloomberg L.P.