Skip to main content

The Globe and Mail

Appeal court allows class actions against CIBC seeking billions in damages

File photo of a CIBC branch in Montreal.

Ryan Remiorz/The Canadian Press

The Ontario Court of Appeal has reversed a lower court decision and will allow three major securities class actions seeking almost $4-billion in damages against the Canadian Imperial Bank of Commerce (TSX:CM) to go to trial.

Lawyers for the plaintiffs say the actions against the bank, its president and CEO, Gerald McCaughey, and other senior directors and officers seek damages arising from alleged non-disclosure of CIBC's exposure to the U.S. subprime market.

It is alleged that the subsequent disclosure of this exposure in December 2007 caused massive losses to shareholders of more than $4-billion.

Story continues below advertisement

"I am overwhelmed by this news," Joel Rochon, senior counsel at Rochon Genova LLP, which is acting on behalf of the shareholders, said of the unanimous decision by the five-judge panel.

"This is a magnificent day for access to justice. Shareholders now have a green light to pursue CIBC for its stunning failure to disclose its $11.5-billion exposure to the U.S. subprime market. It will now be possible for everyday investors to hold public corporations accountable for misrepresentations and failures to disclose."

Report an error
Comments

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨