2023-09-26 16:13:48
After agreeing to a fine of $25 million for false statements about “green” ESG funds (“greenwashing”) and inadequate money laundering controls, DWS can only breathe a sigh of relief. Ultimately, the investigations in the USA at its subsidiary DIMA, which lasted around two years, were considered the most unpleasant for the Deutsche Bank fund company. In addition, the Frankfurt public prosecutor’s office has also been investigating greenwashing allegations made by former DWS employee Desiree Fixler against her former employer for about a year and a half. However, this could be followed by investor lawsuits.
Already now, after the end of the proceedings with the SEC on Monday, the first lawyers are getting into position. “Anyone who has invested in a DWS “greenwashing fund” can reclaim the full investment amount as well as fees already paid from DWS,” says the Berlin law firm Goldenstein, which made a name for itself in the Volkswagen diesel emissions scandal. Finally, even though the SEC has now found no fraudulent intent and no signs that “the employees of DWS Investment Management Americas (DIMA) did not take ESG factors into account in the investment process” – DWS has admitted to excessive marketing for ESG funds . But pointing out that “no misstatements have been identified in relation to our financial disclosures or the disclosures in our fund prospectuses.” DWS probably wants to take the wind out of the sails of possible prospectus liability lawsuits. It remains to be seen whether this will succeed.
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But demanding the return of invested fund money is also an option that could be worthwhile for investors, for example for those who have invested money in the DWS Invest ESG Climate Tech fund, as the Goldenstein law firm suggests. A closer look shows that the fund has delivered an increase in value of almost 30 percent over the past three years. But anyone who joined in the fourth quarter of 2021 will face losses of around 17 percent. You could get this lost money back by demanding your deposit back.
Hanno Mußler Published/Updated: Recommendations: 39 Hanno Mußler Published/Updated: , Recommendations: 4 Hanno Mußler Published/Updated: , Recommendations: 6
If DWS does not respond to this, you would have to sue DWS. The costs for a lawsuit against DWS depend on the respective value in dispute, i.e. the amount of the respective investment. Investor lawyers advertise that legal protection insurance that has already been taken out may cover the costs. But you should try to clarify this with your legal protection insurance beforehand.
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