Deutsche Bank (NYSE:DB) Chief Executive Officer Christian Sewing is facing a multimillion-pound lawsuit brought by former employees who claim that a flawed internal audit, overseen during his tenure as chief auditor, damaged their careers and reputations, Reuters reported, citing court documents.
The legal action is spearheaded by Dario Schiraldi, a former senior Deutsche Bank banker, alongside five other ex-employees. The group is seeking up to €152 million (~$178 million) in damages. They allege that management, including Sewing, sought to cover up its tacit approval of high-risk, profit-generating trades, while leaving the bankers to bear the legal and professional fallout.
The lawsuit stems from a long-running case in Italy. Schiraldi and his colleagues were initially convicted in 2019 by an Italian court but were acquitted in 2022, clearing them of wrongdoing. The bankers now argue that Deutsche Bank’s internal handling of the matter unfairly harmed their earnings potential and professional reputations.
Deutsche Bank has not yet issued a public response to the lawsuit. The case adds fresh legal and reputational challenges for Germany’s largest lender as Sewing continues efforts to strengthen investor confidence and navigate regulatory scrutiny.
