Deutsche Bank AG warned of significantly higher litigation charges this year and said it faces combined claims of almost $1 billion from five former managers who say they were wrongfully blamed for the Banca Monte dei Paschi di Siena SpA accounting scandal. The claims target the bank's role in the Italian lender's derivatives trades that allegedly hid losses.

Deutsche Bank is grappling with mounting legal costs as former executives seek damages over the Monte Paschi affair. The Italian bank's accounting scandal involved complex derivatives transactions that regulators later deemed misleading. The former Deutsche Bank employees argue they were scapegoated for losses tied to these trades.

The litigation adds to Deutsche Bank's mounting legal challenges. The Frankfurt-based lender has been working to resolve various legal matters as part of its broader restructuring efforts. The $1 billion in claims from former managers represents a substantial potential liability as the bank navigates its turnaround strategy.