CIBC to challenge New York court ruling in Cerberus case
CIBC says it “strongly disagrees” with the legal and factual basis of the court's decision.
CIBC said Wednesday it would challenge a New York court ruling that found the Canadian bank liable for damages in a lawsuit brought by Cerberus Capital Management.
The bank has clarified that it expects the total amount of damages, including prejudgment interest, to be x27;approximately US$848 million through December 1, 2022.
CIBC added that it strongly disagrees with the legal and factual basis of the court ruling.
It expects to record a pre-tax provision of approximately C$1.16 billion, or C$850 million after tax, in its first quarter results. quarter of 2023 as a result of this matter.
Cerberus filed the complaint in November 2015.
The matter related to a transaction made in October 2008, which saw CIBC offer limited recourse financing to Cerberus specifying certain series of payments, and a subsequent transaction in 2011 in which CIBC sold a residual interest in the specified series of payments to Cerberus .