The U.S. Court of Appeals for the Eighth Circuit has overturned a prior jury verdict in favor of BMO Bank National Association, a subsidiary of BMO Financial Group, in a lawsuit related to the Thomas J. Petters Ponzi scheme. The court instructed the district court to enter judgment for BMO, reversing the previous decision.As a result, BMO expects to reverse its current provision of CAD$1,190 million, including accrued interest, for this matter. The bank anticipates recording an after-tax recovery of CAD$875 million in Q4, to be treated as an adjusting item in the Corporate Services segment.The lawsuit stemmed from a Ponzi scheme operated by Petters and affiliates through a deposit account at M&I Marshall and Ilsley Bank, a predecessor to BMO. While BMO expressed satisfaction with the appellate court's decision, the matter remains subject to potential rehearing requests and further appeals by the plaintiff.

The U.S. Court of Appeals for the Eighth Circuit has overturned a prior jury verdict in favor of BMO Bank National Association, a subsidiary of BMO Financial Group, in a lawsuit related to the Thomas J. Petters Ponzi scheme. The court instructed the district court to enter judgment for BMO, reversing the previous decision.As a result, BMO expects to reverse its current provision of CAD$1,190 million, including accrued interest, for this matter. The bank anticipates recording an after-tax recovery of CAD$875 million in Q4, to be treated as an adjusting item in the Corporate Services segment.The lawsuit stemmed from a Ponzi scheme operated by Petters and affiliates through a deposit account at M&I Marshall and Ilsley Bank, a predecessor to BMO. While BMO expressed satisfaction with the appellate court's decision, the matter remains subject to potential rehearing requests and further appeals by the plaintiff.