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

    Surrey Police Pursuit Through Five Communities Nets Two Suspects In West Vancouver

    Surrey Police Pursuit Through Five Communities Nets Two Suspects In West Vancouver
    Surrey RCMP say that at about 1 a.m. on Thursday patrol officers noticed two people in a 2000 Honda Civic stolen from Port Coquitlam.  

    Surrey Police Pursuit Through Five Communities Nets Two Suspects In West Vancouver

    Thomas McDonald, Two-Time Murderer Who Escaped Justice For 30 Years Declared Dangerous Offender

    Thomas McDonald, Two-Time Murderer Who Escaped Justice For 30 Years Declared Dangerous Offender
    Thomas McDonald, 64, will serve an indeterminate prison sentence after he confessed during a so-called sting operation to carrying out a fatal 1981 shooting in Dawson Creek B.C.

    Thomas McDonald, Two-Time Murderer Who Escaped Justice For 30 Years Declared Dangerous Offender

    State Memorial Service Sunday For Calgary MLA Manmeet Bhullar Killed While Helping Motorist

    State Memorial Service Sunday For Calgary MLA Manmeet Bhullar Killed While Helping Motorist
    Manmeet Bhullar, who represented the riding of Calgary-Greenway, was on his way to Edmonton from Calgary on Monday afternoon.

    State Memorial Service Sunday For Calgary MLA Manmeet Bhullar Killed While Helping Motorist

    Shoppers Vent Online After Best Buy Canada Site Malfunctions On Black Friday

    Shoppers Vent Online After Best Buy Canada Site Malfunctions On Black Friday
    The online backlash against Best Buy Canada began shortly after the company tweeted Thursday night that its Black Friday sales were in effect.

    Shoppers Vent Online After Best Buy Canada Site Malfunctions On Black Friday

    Nanaimo, B.C., Man Nearly Loses Thousands Of Dollars In iTunes Scam

    Nanaimo, B.C., Man Nearly Loses Thousands Of Dollars In iTunes Scam
    RCMP say the man received an email that appeared to be from Apple iTunes listing several transactions on his account, and asking him to click on a link if the charges were incorrect or fraudulent.

    Nanaimo, B.C., Man Nearly Loses Thousands Of Dollars In iTunes Scam

    Ontario Businessman Jim Estill Sponsoring 50 Syrian Families; Rallies Town To Welcome Them

    Ontario Businessman Jim Estill  Sponsoring 50 Syrian Families; Rallies Town To Welcome Them
    Jim Estill says he's spending at least $1.5 million to privately sponsor the families and help them settle in the southern Ontario city of Guelph.

    Ontario Businessman Jim Estill Sponsoring 50 Syrian Families; Rallies Town To Welcome Them