(Toronto) CIBC said Friday that a New York court issued a liability decision against it on Thursday in a lawsuit brought by Cerberus Capital Management.
Cerberus filed its lawsuit in November 2015.
The case involved a transaction completed in October 2008, which saw CIBC offer limited recourse financing to Cerberus specifying certain series of payments, and a subsequent transaction in 2011 in which CIBC sold a residual interest in the specified series of payments to Cerberus.
Cerberus sought damages of US$1.067 billion in the lawsuit earlier this year.
CIBC has announced its intention to appeal the decision on liability and will challenge Cerberus’ damages measure at a court hearing, scheduled for December 19.
The bank said it expects to record a provision in its results for the first quarter of fiscal 2023, the estimate of which will be determined by developments during the quarter.