CIBC to appeal New York court liability ruling in Cerberus lawsuit

TORONTO –

CIBC says it should attraction a New York court docket resolution discovering the Canadian financial institution answerable for damages in a lawsuit introduced by Cerberus Capital Management LP.

The financial institution says it expects the full quantity of damages, inclusive of prejudgment curiosity, will likely be about US$848 million by means of to Dec. 1, 2022.

CIBC says it disagrees with the authorized and factual foundation for the court docket’s resolution.

The financial institution expects to report a pre-tax provision of about C$1.16 billion or C$850 million after tax in its first quarter 2023 outcomes associated to the case.

Cerberus filed the lawsuit in November 2015.

The case associated to an October 2008 transaction wherein CIBC issued a restricted recourse observe to Cerberus specifying sure cost streams, and a subsequent transaction in 2011 wherein CIBC bought a residual curiosity within the streams to the personal fairness agency.

This report by The Canadian Press was first revealed Jan. 4, 2023.