Deutsche Bank, Germany's largest lender, has announced settlements with over half the plaintiffs in the long-running Postbank litigation, marking a significant step towards resolving a dispute that has plagued the bank for more than a decade.

However, some former Postbank investors continue to hold out, indicating that the bank still faces challenges in putting the matter to rest.

Late Wednesday, Deutsche Bank revealed it had reached agreements with about 60 per cent of claimants, including the largest individual plaintiff representing roughly a third of all claims. The settlements were made at €31 per Postbank share, in addition to the €25 originally paid in 2010 when Deutsche Bank acquired the retail bank.

As a result of these settlements, Deutsche Bank expects to reduce its provisions for potential future payouts by €430 million, which will positively impact its third-quarter earnings. The bank's shares rose approximately 3 per cent in early trading on Thursday following the announcement, outperforming the DAX index of blue-chip stocks.

The Postbank acquisition, initiated during the 2008 global financial crisis, aimed to expand Deutsche Bank's domestic reach and provide a steady income stream. However, it became a source of consumer complaints, regulatory scrutiny, and costly lawsuits.

Former Postbank shareholders have argued for 14 years that Deutsche Bank underpaid for their holdings, claiming the bank had gained de facto control years before completing the buyout. They contend that Deutsche Bank ignored an obligation under German law to make a mandatory takeover offer when Postbank shares were trading at €57.25, substantially higher than the €25 eventually paid.

While the settlements represent progress, some plaintiffs remain unsatisfied. Jan Bayer, a lawyer representing clients who rejected a recent settlement proposal, stated that Wednesday's news had little bearing on his clients' decisions. "Whatever was agreed ... has no effect on any other claimant's decision, so it is irrelevant going forward," he said.

Deutsche Bank expressed satisfaction with the settlements and hinted at the possibility of reviving its scrapped share buyback plan. "Against the backdrop of this improvement to our capital plan, we will review our distribution plans and discuss these with our regulators as part of our ongoing dialogue," the bank stated.

The case took a dramatic turn in April when a court in Cologne indicated it might find some valid elements in the former Postbank shareholders' claims. This prompted Deutsche Bank to make an unexpected provision, leading to a quarterly loss and the cancellation of plans to buy back its own shares.

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