The Globe and Mail reports that investors are planning to bring a securities class action against the Canadian Imperial Bank of Commerce (“CIBC”). The proposed basis for the suit is noteworthy: the bank allegedly misled its investors over the cost of its settlement of the claims brought against it in the Enron securities class action. While CIBC had set aside a $300 million reserve for the settlement, it eventually settled two weeks ago for $2.4 billion.
Quote of note: “The precise size of the class action against CIBC has not been determined, but it will likely seek damages equivalent to the amount of the Enron settlement, which has helped to erase approximately $3.3-billion (Canadian) of CIBC’s market value in the past two weeks, the source said.”
The 10b-5 Daily 