The German bank accused Aladdin of being "reckless and grossly negligent" in performing its duties as the portfolio manager for the CDO, and seeks to recover at least $60m for alleged losses.
According to Bayerische Landesbank, Aladdin marketed the CDO as investment-grade, but that at least 11 of the underlying entitles suffered credit events, enough to totally wipe out its investment.
According to the lawsuit, these entities included Lehman Brothers Holdings, Washington Mutual and two Icelandic banks, among others.
Similar lawsuits have also been filed against many companies, including Goldman Sachs Group.
