8th Circuit Court overturns $564M verdict against BMO Financial Group concerning Petters' Ponzi scheme.
The Eighth Circuit Court of Appeals has overturned a $564 million jury verdict against BMO Financial Group related to a Ponzi scheme led by Thomas Petters. The court ruled that a trustee for Petters' bankrupt company could not recover damages because it had participated in the fraud. As a result, BMO expects to reverse a CAD$1.19 billion provision, leading to an anticipated CAD$875 million after-tax benefit in its fourth-quarter financials.
September 12, 2024
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