The biggest Dutch pension fund, Stichting Pensioenfonds ABP, has settled claims against Deutsche Bank AG regarding residential mortgage-backed securities (RMBS).

According to ABP, this is the fund's third major settlement concerning RMBS within a "short timeframe".

In a lawsuit filed in September 2011 with the New York Supreme Court, ABP had alleged that it had purchased certain RMBS from certain affiliates of Deutsche Bank in 2006 and 2007 based on false and misleading information.

ABP alleged that these securities were far riskier than had been represented, backed by mortgage loans worth significantly less than had been represented. However Deutsche Bank denied and continues to deny these claims.

The undisclosed agreement between ABP and Deutsche Bank resolves all litigation between the two companies regarding RMBS investments.

In a statement, ABP said: "APB is very content to have reached this settlement, within a reasonable timeframe and is pleased that Deutsche Bank AG was willing to reach a mutually satisfactory conclusion of this litigation."

The Dutch pension scheme settled a lawsuit against JPMorgan Chase & Co. in December 2012.

ABP still has cases pending against Goldman Sachs & Co., Merrill Lynch, Credit Suisse, Morgan Stanley and Ally Financial.

First published 07.02.2013

monique_simpson@wilmington.co.uk