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Allstate, Deutsche Bank settle suit over mortgage securities

Allstate, Deutsche Bank settle suit over mortgage securities

(Bloomberg) — Deutsche Bank AG and Allstate Corp. settled a suit the insurer brought that accused the bank of misrepresentations and omissions in connection with loans backing $185 million in mortgage securities.

Allstate sued the Frankfurt-based lender in New York state Supreme Court in Manhattan in February 2011 on claims of fraud and negligent misrepresentation, saying the bank knew the securities were “toxic mixes of loans extended to borrowers who could not afford the properties.” The parties have settled the case, according to a court filing dated today.

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