Germany's biggest lender got a shock when a preliminary ruling suggested it could be on the hook for a massive fine.

Deutsche Bank has said it could be on the hook for up to 1.3 billion euros ($1.39 billion) in claims from a long-running lawsuit alleging it underpaid shareholders for its purchase of retail banking division Postbank.

Deutsche Bank AG has agreed to increase salaries by 12.5% for a large swathe of its German staff, adding to cost pressures for Chief Executive Officer Christian Sewing.

Deutsche Bank shares dropped Monday after the German lender said it may have to pay up to 1.3 billion euros, or about $1.4 billion, to shareholders in a rival bank it bought more than a decade ago. A full €1.

Deutsche Bank shares were down 9% on Monday after news that a long-running lawsuit claiming it underpaid for its purchase of its giant Postbank division could cost up to 1.3 billion euros ($1.39 billion).

Deutsche Bank AG may end up agreeing to settle its latest legal issue out of court in a bid to reduce the impact on profitability, according to Mediobanca.

FRANKFURT (Reuters) - Deutsche Bank said on Sunday that it would "carefully assess" options for a possible settlement in litigation over its takeover of Postbank that has required it to make provision for claims of up to 1.3 billion euros ($1.39 billion).

Deutsche Bank shares fell 8% on Monday after the German lender warned it could be forced to pay out up to €1.3 billion ($1.4 billion) to settle a lawsuit over claims it underpaid Postbank’s shareholders during its takeover of the lender in 2012.

Germany’s largest lender hints at potential settlement over long-running court saga linked to 2010 takeover offer