CIBC To File Appeal Against N.Y. Court's Liability Ruling In Cerberus Lawsuit

(RTTNews) - The North American financial institution CIBC (CM.TO, CM) Friday announced that it will appeal against the New York court's liability ruling in the lawsuit filed by a special purpose vehicle controlled by Cerberus Capital Management L.P.

CIBC noted the court has not determined any damages against it and will hear the parties' arguments on damages at a hearing to be held on December 19, 2022.

CIBC expects to recognize a provision in its first quarter 2023 results, the estimate will be informed later in the quarter.

At trial, Cerberus claimed damages of $1.067 billion and CIBC plans to dispute Cerberus' measure of damages at the hearing on December 19, 2022.

The lawsuit 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.