TORONTO, Feb. 17,
2023 /PRNewswire/ - CIBC (TSX: CM) (NYSE: CM)
announced today that it has entered into an agreement with the
special purpose vehicle controlled by Cerberus Capital Management
L.P. ("Cerberus") to fully settle the previously disclosed lawsuit
filed by Cerberus against CIBC including the most recent judgment
of the New York Court.
Pursuant to the settlement agreement, CIBC has agreed to pay
US$770 million to Cerberus in full
satisfaction of the judgment, and both parties have agreed to
arrange for the immediate dismissal, with prejudice, of all claims,
counterclaims and appeals relating to the litigation. The parties
have also agreed to mutual releases in respect of the matter. The
settlement also eliminates the uncertainty, distraction and expense
of continued litigation between the parties.
CIBC recorded a pre-tax provision of CAD$1,169 million in its first quarter 2023
results to be released on February 24,
2023, representing damages and pre-judgment interest
totaling US$855 million through
January 31, 2023. The US$85 million difference between the amount
recorded in the first quarter 2023 results and the settlement
amount will be reflected in CIBC's second quarter
results.
About CIBC
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 Markets businesses, CIBC offers
a full range of advice, solutions and services through its leading
digital banking network and locations across Canada, with offices
in the United States and around the world. Ongoing news releases
and more information about CIBC can be found
at https://www.cibc.com/en/about-cibc/media-centre.html.
A NOTE ABOUT FORWARD-LOOKING STATEMENTS:
From time to time, we make written or oral forward-looking
statements within the meaning of certain securities laws, including
in this news release, in other filings with Canadian securities
regulators or the U.S. Securities and Exchange Commission, in other
reports to shareholders, and in other communications. All such
statements are made pursuant to the "safe harbour" provisions of,
and are intended to be forward-looking statements under, applicable
Canadian and U.S. securities legislation, including the U.S.
Private Securities Litigation Reform Act of 1995. Forward-looking
statements in this press release may include, but are not limited
to, CIBC's intention to contest or appeal the verdict.
Forward-looking statements are typically identified by the words
"believe", "expect", "anticipate", "intend", "estimate",
"forecast", "target", "objective" and other similar expressions or
future or conditional verbs such as "will", "should", "would" and
"could". By their nature, these statements require us to make
assumptions, and are subject to inherent risks and uncertainties
that may be general or specific. The future outcomes that relate to
forward-looking statements may be influenced by many factors,
including, but not limited to: the final outcome of the Cerberus
matter; legal and other developments in litigation, such as
judicial rulings or findings or any resolution of litigation that
differs from what is anticipated or expected. These and other
factors should be considered carefully, and readers should not
place undue reliance on our forward-looking statements. Any
forward-looking statements contained in this news release represent
the views of management only as of the date hereof and are
presented for the purpose of assisting our shareholders and
financial analysts in understanding our financial position,
objectives and priorities and anticipated financial performance as
at and for the periods ended on the dates presented, and may not be
appropriate for other purposes. We do not undertake to update any
forward-looking statement that is contained in this news release or
in other communications except as required by law.
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SOURCE CIBC