Deutsche Bank and its MortgageIT unit are hoping the case will be dismissed due to it being based on unsupported and conclusory rhetoric, Bloomberg reports.
The argument against the German lender is that it was flexible with the truth in order to qualify risky mortgages for insurance by the Housing and Urban Development Department's Federal Housing Administration.
However, in a court filing, Deutsche Bank - which has more than 100,000 employees stationed in 73 countries across the globe - stated: "It utterly fails to state any basis on which to hold Deutsche Bank liable for alleged conduct that occurred before it acquired MortgageIT and in which it had no involvement."
The US administration made the case against the institution under the False Claims Act - a ruling that enable penalties in excess of $1 billion to be administered.
By Tony Aynsley