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FRANKFURT (Reuters) -Deutsche Bank said on Wednesday it would vigorously defend itself against a lawsuit by a Spanish hotel group claiming 500 million euros ($578.3 million) in losses on derivatives products. The suit is the latest development in an issue that first came to light earlier this year, and is a setback for the bank which has been working to restore its public image. The Ibiza-based company, Palladium Hotel Group, said in court documents dated Sept. 30 that Deutsche's bankers sold products knowing that the hotel executives "did not have any (or any significant) experience in dealing with complex financial derivative transactions".