LONDON, ON, TBD /CNW/ - This notice is directed to mortgagors under mortgages issued by CIBC Mortgages Inc. who reside in Canada, excluding Quebec, and who paid a prepayment charge when they prepaid part or all of their mortgages from 2005 onward (the "Class Members").
WHAT ARE THESE CLASS ACTIONS ABOUT?
Two actions (Jordan v CIBC Mortgage Inc. and Sherry v CIBC Mortgage Inc., together the "Class Actions") were brought against the defendant CIBC Mortgages Inc. ("CIBC") in connection with the calculation of certain prepayment charges on mortgages across Canada, excluding Quebec. The Class Actions apply to CIBC mortgages as well as mortgages through related entities such as Firstline Mortgages and President's Choice Financial.
WHO IS AFFECTED BY THE CLASS ACTIONS?
The Class Actions affect the rights of all Class Members.
WHAT SETTLEMENT HAS BEEN REACHED?
CIBC has agreed to pay the total amount of CAD$7.5 million in settlement of the Class Actions (the "Settlement"). The Settlement is a compromise of disputed claims and is not an admission of liability or wrongdoing by CIBC. The Settlement is subject to approval of the courts, and Class Members have a right to object to the Settlement. The Settlement provides for a payment estimated at CAD$224 to each claimant, depending on when Class Members borrowed money and prepaid their mortgage loan. In the event that the total amount claimed exceeds the amount available for claims then each payment will be reduced on a pro rata basis.
HOW DOES THIS AFFECT ME?
Class Members who do not wish to participate in the lawsuit and settlement must opt out by January 23, 2022. A Class Member who opts out is excluded from the Class Actions and will not be entitled to share in the Settlement, if approved. However, his or her right to pursue a claim in a separate proceeding will not be affected. Once a Class Member opts out, the limitation period applicable to their claim will begin running again.
WHO PAYS CLASS COUNSEL?
At the same time as the Settlement Approval hearing, Class Counsel will ask the court to approve their legal fees of up to $1,875,000 (25% of the total Settlement), plus disbursements (expenses). If approved, Class Counsel's fees and disbursements will be paid from the Settlement amount.
WHERE CAN I GET MORE INFORMATION?
For more information about your rights and how to exercise them, please see the long-form notice online at:
WHO IS CLASS COUNSEL?
The law firm of Siskinds LLP represents Class Members in Ontario and the other provinces and territories, excluding British Columbia and Quebec:
This notice was authorized by the Ontario Superior Court of Justice and the Supreme Court of British Columbia
SOURCE Siskinds LLP
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