German bank sued in Singapore over bonus dispute

Commerzbank described the claims as “scandalous” and “vexatious,” according to its defense.

A Bloomberg report said, “Commerzbank AG, Germany’s second-largest lender, was sued by 10 former employees at its Dresdner Kleinwort unit in Singapore claiming they were entitled to S$9.5 million ($7.7 million) in bonuses.”

According to a lawsuit filed with the Singapore High Court, the former workers claimed they were given false assurances and induced to stay on because of the proposed bonus to be paid in January 2009.

Meanwhile in a statement the German lender said, “Dresdner Bank was entitled to reduce its employees’ 2008 discretionary bonuses in the light of the marked deterioration in the investment bank’s performance in late 2008.”

View the report here.