09:54:31 EST Wed 01 Feb 2023
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Canadian Imperial Bank of Commerce (CIBC)
Symbol CM
Shares Issued 906,003,982
Close 2022-12-02 C$ 59.39
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CIBC caps off bad week with loss in New York court

2022-12-02 10:21 ET - News Release

An anonymous director reports


A New York court issued a liability ruling against Canadian Imperial Bank of Commerce late in the afternoon on Dec. 1, 2022, in a lawsuit brought by a special-purpose vehicle controlled by Cerberus Capital Management LP. The court has not determined any damages against CIBC and will hear the parties' arguments on damages at a hearing to be held on Dec. 19, 2022.

CIBC disputes the liability ruling and intends to appeal.

The lawsuit, filed by Cerberus in November, 2015, relates 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 specified payment streams to Cerberus. At trial, Cerberus claimed damages of $1.067-billion (U.S.) (which was inclusive of prejudgment interest as of March 7, 2022). CIBC will vigorously dispute Cerberus's measure of damages at the hearing on Dec. 19, 2022.

CIBC had not set aside a provision for this matter in its year-end (Oct. 31, 2022) consolidated financial statements, as it believed it was more likely than not to prevail at trial, but included a material amount for the matter in the range of reasonably possible losses for legal claims disclosed in aggregate in its consolidated financial statements. CIBC expects to recognize a provision in its first quarter 2023 results, the estimate of which will be informed by developments during the quarter.

About Canadian Imperial Bank of Commerce

CIBC is a leading North American financial institution with 13 million personal banking, business, public-sector and institutional clients. Across personal and business banking, commercial banking and wealth management, and capital market businesses, CIBC offers a full range of advice, solutions and services through its leading digital banking network and locations across Canada, in the United States and around the world.

We seek Safe Harbor.

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