TORONTO — CIBC says it will appeal a New York court decision finding the Canadian bank liable for damages in a lawsuit brought by Cerberus Capital Management LP.
The bank says it expects the total amount of damages, inclusive of prejudgment interest, will be about US$848 million through to Dec. 1, 2022.
CIBC says it disagrees with the legal and factual basis for the court’s decision.
The bank expects to record a pre-tax provision of about C$1.16 billion or C$850 million after tax in its first quarter 2023 results related to the case.
Cerberus filed the lawsuit in November 2015.
The case related to an October 2008 transaction in which CIBC issued a limited recourse note to Cerberus specifying certain payment streams, and a subsequent transaction in 2011 in which CIBC sold a residual interest in the streams to the private equity firm.
This report by The Canadian Press was first published Jan. 4, 2023.
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