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Eighth Circuit Court of Appeals Overturns Petters Judgement, in BMO's Favour
Eighth Circuit Court of Appeals Overturns Petters Judgement, in BMO's Favour Canada New...
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[{"type":"text","content":"\n\n\n\n Eighth Circuit Court of Appeals Overturns Petters Judgement, in BMO's Favour\n \n\n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n\n\n\n\n\n Canada NewsWire\n \n\n\n\n\n\n TORONTO\n \n and\n \n CHICAGO\n \n\n ,\n \n\n Sept. 12, 2024\n \n\n /CNW/ - BMO Financial Group (TSX: BMO) (NYSE: BMO) announced today that\n \n the United States\n \n Court of Appeals for the Eighth Circuit reversed a prior jury verdict and instructed the district court to enter judgement in favour of BMO's U.S. subsidiary, BMO Bank National Association. The lawsuit related to a Ponzi scheme carried out by\n \n Thomas J. Petters\n \n and certain affiliated individuals and entities (collectively, Petters) that operated a deposit account at a predecessor bank, M&I Marshall and Ilsley Bank.\n \n\n \"We are very pleased with the decision of\n \n the United States\n \n Court of Appeals for the Eighth Circuit,\" stated a BMO spokesperson.\n \n\n As a result of this outcome, in accordance with applicable accounting standards, BMO expects to reverse its current provision of\n \n CAD$1\n \n ,190 million, which includes accrued interest, with respect to this matter, the details of which are set out in BMO's continuous disclosure material, resulting in an expected after-tax recovery of CAD$875 million to be recorded in the fourth quarter in the Corporate Services segment and treated as an adjusting item.\n \n\n\n Cautionary statement regarding forward-looking information\n \n\n\n Certain statements in this press release are forward-looking statements. All such statements are made pursuant to the \"safe harbor\" provisions of, and are intended to be forward-looking statements under, the United States Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. Forward-looking statements in this press release may include, but are not limited to, statements with respect to the expected reversal of the charge taken by BMO, including, but not limited to, the amount of the expected reversal of the charge and the related after-tax recovery, and the ultimate...