Weasel parade

Investment bank CIBC has been found guilty of multiple counts of deception inunderwriting a bond deal for cosmetics company Renaissance. Linda Cormanreports on the evidence that emerged from the court case

A jury has found – possibly for the first time – that distressed debt holders have the same right to sue as original bondholders when their investments tank. In early September, a superior court jury in Los Angeles ordered CIBC World Markets to pay bondholders $52 million in damages. The jury decided that CIBC had misrepresented and withheld information about the precarious condition of Renaissance Cosmetics, whose bonds CIBC underwrote.

The plaintiffs – TCW Shared Opportunity Fund ll, OCM

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