U.S. sues Deutsche Bank, other banks for $190 million

Federal authorities in New York have sued Deutsche Bank and other financial entities, alleging they dodged more than $100 million in taxes with some fancy financial footwork.

The lawsuit was filed Monday in Manhattan federal court. It seeks to recover more than $190 million in taxes, penalties and interest.

Manhattan U.S. Atty. Preet Bharara said Deutsche Bank used shell companies to make tax liabilities disappear nearly 15 years ago.

Deutsche Bank spokeswoman Renee Calabro said the bank addressed the government’s concerns about the transaction in a 2009 agreement with the IRS.

She said the government had abandoned its theory that the bank was liable, and that it was unclear why Preet is pursuing the issue again. She said the bank will vigorously fight the case.