Investors sue CIBC over subprime exposure

A group of investors has become the first to launch a class-action lawsuit againstCanadian Imperial Bank of Commerce, alleging misrepresentations about the bank’s exposure to the American subprime mortgage market. The claim alleges that the bank misrepresented its total exposure to U.S. subprime loans by saying it “was ‘not a major issue’ when, in fact, the bank had exposure to billions of dollars of losses.” The suit was filed with the Ontario Superior Court by Toronto’s Rochon Genova LLP. Lawyer Joel Rochon said that CIBC “ignored its legally required disclosure obligations to the detriment of the investing public.” CIBC denied the allegations. “CIBC is confident that, at all times, its conduct was appropriate and that its disclosure met applicable requirements,” spokesman Rob McLeod wrote in an e-mail. CM (TSX) rose $3.17 to $63.29. CP