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

    Liberals Announce Advisory Board To Quickly Choose New Independent Senators

    Liberals Announce Advisory Board To Quickly Choose New Independent Senators
    OTTAWA — The Trudeau government is setting up a five-member advisory board to fill the empty seats in the Senate with independent senators.

    Liberals Announce Advisory Board To Quickly Choose New Independent Senators

    Retired Couple In Orangeville, Ont., Opens Home To Syrian Refugees

    Retired Couple In Orangeville, Ont., Opens Home To Syrian Refugees
    The Logels' three children and five grandchildren, themselves frequent visitors to the family homestead located on four hectares outside town, are coming for Christmas, though the Logels recognize the holiday isn't one their guests celebrate.

    Retired Couple In Orangeville, Ont., Opens Home To Syrian Refugees

    Quebec Tells Doctors To Respect Court Decision Suspending Right-to-die Law

    Quebec Tells Doctors To Respect Court Decision Suspending Right-to-die Law
    MONTREAL — Doctors must respect a court ruling suspending Quebec's assisted-suicide law but the government won't go on a "witch hunt" against physicians who offer palliative sedation,  the province's health minister said Wednesday.

    Quebec Tells Doctors To Respect Court Decision Suspending Right-to-die Law

    Defence Lawyer Calls Travis Vader, Accused In Deaths Of Couple, A 'Victim'

    Brian Beresh's comments came Wednesday during his questioning of Sgt. Rick Jané, the head RCMP investigator in the deaths of Lyle and Marie McCann, who vanished on a trip to B.C. in 2010.

    Defence Lawyer Calls Travis Vader, Accused In Deaths Of Couple, A 'Victim'

    Toronto Teen With Cystic Fibrosis Gets Second Go At Life With First-of-its-kind Triple Transplant

    Toronto Teen With Cystic Fibrosis Gets Second Go At Life With First-of-its-kind Triple Transplant
    TORONTO — A Toronto teen with cystic fibrosis has been given a second chance at life with a first-of-its-kind triple-organ transplant.

    Toronto Teen With Cystic Fibrosis Gets Second Go At Life With First-of-its-kind Triple Transplant

    Moose Cull On Cape Breton Highlands National Park Resumed Wednesday

    CAPE BRETON, N.S. — A Parks Canada plan to reduce the moose population on Cape Breton Highlands National Park through a cull for Mi'kmaq hunters resumed Wednesday.

    Moose Cull On Cape Breton Highlands National Park Resumed Wednesday