Cahill Litigation Team Prevails on Behalf of Deutsche Bank Trust Company Americas
A Cahill litigation team prevailed on behalf of Deutsche Bank Trust Company Americas (“DBTCA”) in the United States Court of Appeals for the Eleventh Circuit, obtaining an affirmance of the dismissal of a suit brought by broker/dealer Insight Securities, Inc. ("Insight"). Insight's complaint is one of several actions arising from a long-running Ponzi scheme operated by entities unaffiliated with Deutsche Bank. In its suit, Insight asserted a claim against DBTCA for negligence arising from the transfer and liquidation of securities alleged to have been funneled among various custody accounts as part of the Ponzi scheme.
On June 28, 2022, the Court of Appeals affirmed the dismissal of Insight's complaint, with prejudice. Among other things, the 11th Circuit held that Insight had not plausibly alleged any basis for a duty owed by DBTCA to Insight because depository institutions have no duty to investigate transactions made by authorized agents of their account holders.