Akamai Technologies Inc’s ARS Lawsuit Against Deutsche Bank Can Proceed

The U.S. District Court for the District of Massachusetts says that, under the 1934 Securities Exchange Act and the Massachusetts’ Uniform Securities Act, Akamai Technologies Inc.’s (AKAM)auction-rate securities lawsuitthat seeks to hold Deutsche Bank AG liable for $200 million in losses can proceed. The judge ruled that the Internet content delivery firm had properly pleaded a material misrepresentation or omission in violation of Section 10(b) of the ’34 Securities Exchange Act, which is necessary for a control person claim under Section 20(a). The court also held that Akamai clearly pleaded Deutsche Bank’s control over Deutsche Bank Securities Inc., the subsidiary that allegedly advised the company to buy the toxic ARS.

根据法院，DBS是Akamai Securities Corp.和Akamai Technologies Inc. Akamai的经纪人bob200体育和投资顾问。Akamai告诉投资顾问，它希望将资金放入液体和安全的证券中，以便在需要时获得资金。DBS告诉Akamai，ARS是安全的，液体的，即使金融公司据称知道他们之前已经这样做，并且实际上构成了比导致Akamai相信的更高的风险。即使在2007年8月，当德意志银行知道对ARS的需求正在下降，并且ARS拍卖失败的风险正在上升，据称该投资顾问仍未通知Akamai市场正在发生变化。

When the ARS market did fall in 2008, Akamai was left with over $200 million in illiquid securities. Its securities fraud lawsuit also claims that even as DBS continued to claim that the securities were liquid and safe, resulting in Akamai increasing its ARS investments, the investment bank was decreasing its own exposure to the market.

Oursecurities fraud attorneysrepresent clients whose investments were frozen during the auction-rate securities market crisis. Unfortunately, many investors were told that that ARS were liquid like cash and low risk.