Oppenheimer Files $176 Million Breach of Contract Suit in NY Court
Posted on Jan 01, 2016
On Friday, March 15, 2013, Oppenheimer Holdings Inc. filed suit in a New York state court accusing Canadian Imperial Bank of Commerce of breach of contract. The lawsuit stems from the agreement between the two parties for the sale of Canadian Imperial’s U.S. capital markets business to Oppenheimer. The contract was reached in January of 2008.
According to its court filing, Oppenheimer alleges that Canadian Imperial contacted the company in late 2007 to propose a deal. To induce Oppenheimer to purchase its U.S. capital markets business, which, at the time, was subject to sharp criticism by analysts, journalists, and investors, Canadian Imperial pledged “to support Oppenheimer’s lending activities with its own balance sheet for a period of five years, in an aggregate amount of $2 billion.” Rather than doing so, however, Oppenheimer alleges that shortly after reaching the agreement, Canadian Imperial installed new management. This new management “openly disparaged the essence of the bargain” and “exhibited no intention of following through” on the deal.
Oppenheimer is seeking $176 million as a result of the alleged breach of contract. The company claims that the $176 million is an accurate representation of its losses following Canadian Imperial’s failure to uphold its end of the bargain. Canadian Imperial released a statement in response that the lawsuit is “without merit.” The bank states that it plans to defend itself against the lawsuit.
Contact a New York breach of contract attorney today at (888) 497-3410 for more information about this and other business litigation matters.