Deutsche Bank has requested a judge to dismiss a $1 billion lawsuit against it, Bloomberg reports. The U.S. government had alleged that the bank and its MortgageIT unit lied to qualify thousands of risky mortgages for a government insurance program.
The bank has sought dismissal of the case on the grounds that the complaint is unsupported and short on facts. MortgageIT, which offered loans to homebuyers shortly, was acquired by Deutsche Bank in 2007 and stopped lending after the acquisition. The bank claims that it is not legally responsible for any liability tied to MortgageIT’s operations.
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