03:33 PM EDT, 07/12/2024 (MT Newswires) -- (Adds details in the fourth paragraph.)

Deutsche Bank ( DB ) settled a 500 million euro ($545 million) claim from Palladium Hotel Group over losses sustained by the Spanish hotel chain from foreign-exchange derivatives sold by the lender, Bloomberg reported Friday.

Palladium claimed in its lawsuit that Deutsche Bank ( DB ) sold products that it didn't understand and, as a result, it acquired derivatives with a notional value as high as 5.6 billion euros, according to the report.

Deutsche Bank ( DB ) reportedly said it has "resolved the matter" in response to Bloomberg questions on the status of the suit.

The bank did not share details about the charge related to the settlement and said that the settlement's impact was reflected in the guidance on litigation costs provided for Q2. The bank does not forecast any impact in Q3 or beyond, the report said.

Deutsche Bank ( DB ) and Palladium Hotel Group did not immediately respond to MT Newswire's request for comment.

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