Close X
Tuesday, November 26, 2024
ADVT 
National

Supreme Court Rules That Class-action Lawsuit Against CIBC Can Proceed To Trial

Darpan News Desk The Canadian Press, 04 Dec, 2015 12:59 PM
    TORONTO — The Supreme Court of Canada has dismissed an appeal by CIBC, allowing a class-action lawsuit brought by shareholders against the bank to proceed to trial.
     
    The bank is alleged to have failed to adequately disclose its exposure to the U.S. subprime market.
     
    "The bank now has to face the music, and we can move forward with this case on the merits," said Joel Rochon, the lawyer representing the shareholders.
     
    The case will be heard in the Ontario Superior Court of Justice in Toronto. Rochon said he expects the trial to begin some time in the next 12 to 18 months.
     
    Canadian Imperial Bank of Commerce (TSX:CM) has said it would defend itself "vigorously" against the allegations, which have not been proven in court.
     
    CIBC's appeal had argued that the limitation period for the statutory action had expired under the terms of the Ontario Securities Act.
     
    CIBC said it is disappointed in the ruling, but said the decision was a procedural one that would determine whether the case can proceed as a class action.
     
    "We continue to believe that CIBC's conduct was appropriate and that our disclosure met applicable requirements," spokesman Kevin Dove said in an email.
     
    "This is truly positive news for Canadian shareholders, because we now have a clear and effective remedy to pursue corporations, including banks, where there have been material misrepresentations made to the marketplace," Rochon said.
     
    "It's cases like these that need to be pursued, and the court has made it possible for shareholders to advance these cases, and to advance them effectively."
     
    The case alleges that the bank had an $11.5 billion exposure to the U.S. subprime real estate market that it did not properly disclose to shareholders.
     
    The subsequent disclosure of this exposure caused massive losses to shareholders of more than $4 billion, they contend.
     
    The subprime market involved mortgage-backed securities that offered attractive rates of return due to higher interest on the mortgages, but the lower credit quality eventually produced massive defaults.

    MORE National ARTICLES

    B.C. Climate Report Says Hike Carbon Tax, Extend Reduction Targets To 2050

    In the report released Friday, a climate leadership team concluded the province will fail to meet its 2020 targets and recommends focusing emission-reduction targets for 2030 and 2050.

    B.C. Climate Report Says Hike Carbon Tax, Extend Reduction Targets To 2050

    UBC Graduate Student Society Launches Confidential Harassment Reporting Website

    UBC Graduate Student Society Launches Confidential Harassment Reporting Website
    The university's graduate student society has launched a website called "My Grad Story" that encourages students to share their experiences through an online form, a private appointment or by sharing publicly on social media.

    UBC Graduate Student Society Launches Confidential Harassment Reporting Website

    Justin Trudeau To Discuss Climate Change In Meeting With Indian PM Narendra Modi

    Justin Trudeau To Discuss Climate Change In Meeting With Indian PM Narendra Modi
    India's Modi took a pass on Malta and his country is seen as a significant impediment to a global climate change pact, given India's refusal to rein in its galloping greenhouse gas emissions.

    Justin Trudeau To Discuss Climate Change In Meeting With Indian PM Narendra Modi

    Maine Ski Resort Works Focuses On Safety After 2nd Lift Accident In 5 Years

    Maine Ski Resort Works Focuses On Safety After 2nd Lift Accident In 5 Years
    Sugarloaf is spending $1.5 million to make improvements after a chairlift malfunction allowed it to move in reverse last March, injuring seven skiers.

    Maine Ski Resort Works Focuses On Safety After 2nd Lift Accident In 5 Years

    Prime Minister Justin Trudeau Pledges $15Million To Train Youth In Eight African Countries

    Prime Minister Justin Trudeau Pledges $15Million To Train Youth In Eight African Countries
    VALLETTA, Malta — The Canadian government will contribute more than $15 million to help train youth in eight African countries find good jobs.

    Prime Minister Justin Trudeau Pledges $15Million To Train Youth In Eight African Countries

    Racial Attack On Indian Family In Northern Ireland, £5,000 Raised By Strangers For Help

    Racial Attack On Indian Family In Northern Ireland, £5,000 Raised By Strangers For Help
    An Indian family faced racial attack in Northern Ireland as their car was torched in the premises of their house

    Racial Attack On Indian Family In Northern Ireland, £5,000 Raised By Strangers For Help