Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Ex-CIBC Employees Suit Tentatively Settled for $10.2 Million

Aug. 3 (Bloomberg) -- Canadian Imperial Bank of Commerce and its insurers tentatively agreed to pay $10.2 million to settle a 2005 U.S. lawsuit filed by two former employees over a money-losing company investment fund, according to court papers.

In a Delaware Chancery Court complaint, James Forsythe and Alan Tesche contended the bank failed to properly oversee the $561 million CIBC Employee Private Equity Fund (U.S.) Inc.

“The parties agree that the settlement consideration constitutes fair, adequate and reasonable consideration for the settlement of all claims,” lawyers for the employees and the bank said in court documents. Judge J. Travis Laster will rule on fairness of the agreement at a hearing in Wilmington Oct. 26, according to an order signed today.

The lawsuit alleged that Toronto-based CIBC officials wasted millions due to “willful and wanton lack of supervision of the fund’s management.” The company reported almost $12 billion in revenue last fiscal year.

The settlement money, minus as much as $3 million in plaintiffs’ legal fees and expenses, will be deposited in the fund, court papers show.

The case is Forsythe v. CIBC, CA1091-N, Delaware Chancery Court (Wilmington).

To contact the reporter on this story: Phil Milford in Wilmington, Delaware, at pmilford@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.