The price of Deutsche Bank shares increased by 3% following the resolution of a significant portion of claims in the ongoing Postbank lawsuit.

• Nearly 60% of plaintiffs in a long-running case against Deutsche Bank have reached settlements over allegations that the German lender underpaid for its acquisition of Postbank more than a decade ago.
• The German lender stated that the settlement would enable it to set aside 430 million euros in provisions for the case.
• Institutional investors' lawyer stated that the settlement of a chunk of cases had no impact on any other claimant, according to CNBC.

Nearly 60% of plaintiffs in a long-running case alleging the German lender underpaid for its acquisition of Postbank more than a decade ago have reached settlements.

On Wednesday, Deutsche Bank announced that it had reached settlement agreements with over 80 plaintiffs for a payment of 31 euros ($34.53) per share, as proposed by the bank. This will enable Germany's largest lender to release the funds and increase its anticipated third quarter pre-tax profit by 430 million euros, the bank stated.

At 11:48 a.m. in London, Deutsche Bank shares were up 2.96%, reaching their highest point in a month.

The bank's second-quarter results, released on July 24, caused shares to plummet as it reported its first net loss in four years, mainly due to a 1.3 billion euro ($1.45 billion) provision for Postbank cases.

The bank stated on Wednesday that the largest individual plaintiff accounted for approximately one-third of the claims.

In 2018, Deutsche Bank was sued by a variety of institutional and private investors for allegedly underpaying in its acquisition of Postbank, a German retail bank with a large customer base.

Deutsche Bank stated that if it entered into settlement agreements with additional plaintiffs, it could result in further positive implications on the total provisions taken for the litigation.

The Higher Regional Court of Cologne dismissed all claims in the proceedings in 2020, but this ruling was set aside by Germany's Federal Court of Justice in 2022 and sent back to the Higher Regional Court for a new decision.

A chunk of claims remain outstanding.

Bayer Krauss Hueber's senior partner, Jan Bayer, representing approximately 50 institutional claimants, stated that his clients had rejected the settlement. Last week, Bayer characterized the 36.5 euros per Postbank share offer as a "late low ball."

On Thursday, Bayer informed CNBC that the acceptance had no impact on any other claimants.

According to a Thursday note from JP Morgan's analysts, they predicted that the settlement would increase Deutsche Bank's Common Equity Tier 1 capital by approximately 10 basis points. At the end of the second quarter, Deutsche Bank's Common Equity Tier 1 capital was 13.5%.

"In summary, we view the settlement as a positive step towards resolving a longstanding legal dispute," they stated.

The bank previously announced that it was unlikely to make a second tranche of share buybacks this year, as they did not assume that the settlements would lead to it.

JP Morgan stated that Deutsche Bank would need to demonstrate ongoing capital generation for the market to feel comfortable with increased payouts, considering the European Central Bank's industry-wide leveraged finance review.