(Bloomberg) -- Deutsche Bank AG agreed to pay $26.25 million to settle a lawsuit that accused it of misleading investors about how thoroughly it vetted clients, among them convicted sex offender Jeffrey Epstein and Russian oligarchs.

The proposed accord filed Friday in Manhattan federal court resolves a class-action suit filed in 2020 over the bank’s “Know Your Customer” processes and procedures.

The suit pointed to the bank’s business relationship with Epstein, who died in jail in 2019, and oligarchs, including billionaire Roman Abramovich.

Investors alleged that the bank’s false statements about its vetting processes artificially inflated its stock price and caused shares to plunge when information about its client list went public.

In June, judge rejected the bank’s request to dismiss the investors’ complaint. The bank denied any wrongdoing, according to the settlement agreement.

The settlement was reported earlier by Reuters.

In 2020, the bank agreed to pay New York’s banking regulator $150 million for a string of compliance lapses including a half-decade of lax oversight of Epstein’s financial dealings.

The case is Karimi v. Deutsche Bank AG, 22-cv-02854, U.S. District Court, Southern District of New York (Manhattan).

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