CIBC settles Cerberus matter for $770M

CIBC announced that it has entered into an agreement with the special purpose vehicle controlled by Cerberus Capital Management L.P. to fully settle the previously disclosed lawsuit filed by Cerberus against CIBC including the most recent judgment of the New York Court. Pursuant to the settlement agreement, CIBC has agreed to pay $770M to Cerberus in full satisfaction of the judgment, and both parties have agreed to arrange for the immediate dismissal, with prejudice, of all claims, counterclaims and appeals relating to the litigation. The parties have also agreed to mutual releases in respect of the matter. The settlement also eliminates the uncertainty, distraction and expense of continued litigation between the parties. CIBC recorded a pre-tax provision of C$1.169B in its first quarter 2023 results to be released on February 24, 2023, representing damages and pre-judgment interest totaling $855M through January 31, 2023. The $85M difference between the amount recorded in the first quarter 2023 results and the settlement amount will be reflected in CIBC’s second quarter results.