TORONTO and CHICAGO, Sept. 12,
2024 /PRNewswire/ - BMO Financial Group (TSX: BMO)
(NYSE: BMO) announced today that the
United States 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 Thomas J. Petters and certain
affiliated individuals and entities (collectively, Petters) that
operated a deposit account at a predecessor bank, M&I Marshall
and Ilsley Bank.
"We are very pleased with the decision of the United States Court of Appeals for the
Eighth Circuit," stated a BMO spokesperson.
As a result of this outcome, in accordance with applicable
accounting standards, BMO expects to reverse its
current provision of CAD$1,190 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.
Cautionary statement regarding forward-looking
information
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 resolution of the
Petters matter, which remains subject to the plaintiff's right to
request a rehearing and any related appeal rights. Forward-looking
statements are typically identified by words such as "expects" or
negative or grammatical variations thereof.
By their nature, forward-looking statements require us to make
assumptions and are subject to inherent risks and uncertainties,
both general and specific in nature. There is significant risk that
predictions, forecasts, conclusions or projections will not prove
to be accurate, that our assumptions may not be correct, and that
actual results may differ materially from such predictions,
forecasts, conclusions or projections. We caution readers of this
press release not to place undue reliance on our forward-looking
statements, as a number of factors – many of which are beyond our
control and the effects of which can be difficult to predict –
could cause actual future results, conditions, actions or events to
differ materially from the targets, expectations, estimates or
intentions expressed in the forward-looking statements.
The future outcomes that relate to forward-looking statements
may be influenced by many factors, including, but not limited to:
the final outcome of the Petter's matter, including the plaintiff's
right to request a rehearing of the decision of the United States Court of Appeals for the
Eighth Circuit and any related appeal rights of both the plaintiff
and BMO, as well as legal and other developments in
litigation, such as the risk of judicial and/or jury rulings or
findings or any resolution of litigation that differ from what is
anticipated or expected, all of which could result in a potentially
material provision and charge; the timing and determination of the
amount of the reversal of the charge taken by BMO in
connection with the Petters' matter and the related after-tax
recovery; and those other factors discussed in the "Enterprise-Wide
Risk Management" section of BMO's 2023 Annual Report, as updated by
quarterly reports, all of which outline certain key factors and
risks that may affect our future results and our ability to
anticipate and effectively manage risks arising from all of the
foregoing factors.
We caution that the foregoing list is not exhaustive of all
possible factors. Other factors and risks could adversely affect
our results. Investors and others should carefully consider these
factors and risks, as well as other uncertainties and potential
events, and the inherent uncertainty of forward-looking statements.
We do not undertake to update any forward-looking statements,
whether written or oral, that may be made from time to time by us
or on our behalf, except as required by law.
About BMO Financial Group
BMO Financial Group is the eighth largest bank in North America by
assets, with total assets of $1.4 trillion as of July 31, 2024.
Serving customers for 200 years and counting, BMO is a diverse team
of highly engaged employees providing a broad range of personal and
commercial banking, wealth management, global markets and
investment banking products and services to 13 million customers
across Canada, the United States,
and in select markets globally. Driven by a single purpose, to
Boldly Grow the Good in business and life, BMO is committed
to driving positive change in the world, and making progress for a
thriving economy, sustainable future, and inclusive society.
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SOURCE BMO Financial Group