Ex-Trader Suing Deutsche Bank Wants £500 Million in Paschi Case

Ex-Deutsche Bank AG executive Michele Faissola is seeking as much as £500 million ($669 million) in his U.K. lawsuit over allegations the lender caused irreparable harm to his career, according to people familiar with the matter.

The German bank said in its annual report published earlier this month that four ex-employees that have sued in English courts are seeking more than a total of £600 million over the Banca Monte dei Paschi di Siena SpA accounting scandal. Faissola’s compensation claim would account for the vast majority of the total sought by the quartet.

The lender also said that it has put aside €293 million ($338 million) to cover fresh litigation risks without identifying any new cases.

“Deutsche Bank considers all such claims to be without merit and will defend itself against them robustly, including disputing the inflated, unrealistic alleged losses claimed,” it said in its annual report referring to the damages sought by the former executives including Faissola.

Deutsche Bank and Faissola declined to comment on the award being sought.

The Monte Paschi managers were accused of colluding with staff at Deutsche Bank to hide losses at the Italian firm by using complex derivative trades, leading to a misrepresentation of its finances between 2008 and 2012.

The ex-Deutsche Bank employees were also charged with market manipulation — all six were ultimately acquitted by a Milan appeals court in 2022 because there was no case to answer.

Last month, Deutsche Bank settled its case with Michele Foresti, who had also claimed he was wrongfully blamed for the Monte Paschi accounting scandal, the first of the London cases to be settled. Dario Schiraldi, a former top manager from Deutsche Bank’s asset and wealth management division, filed a case in Frankfurt claiming around €152 million over the issue.

The cases against Deutsche Bank are the latest instances of former bank executives seeking damages after courts in Europe overturned previous convictions going back as much as a decade. Those convictions had made it difficult for the affected individuals to find similar work.