BMO Triumphs as US Court Voids $564M Verdict in Ponzi Scheme Case

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BMO Triumphs as US Court Voids $564M Verdict in Ponzi Scheme Case

Zacks09-17

Bank of Montreal BMO wins major legal victory in the Petters Ponzi scheme case. The company's U.S. subsidiary, BMO Bank National Association, was granted a verdict by the district court after the U.S....

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The company's U.S. subsidiary, BMO Bank National Association, was granted a verdict by the district court after the U.S....</p>\n\n<a href=\"https://finance.yahoo.com/news/bmo-triumphs-us-court-voids-165600504.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>BMO Triumphs as US Court Voids $564M Verdict in Ponzi Scheme Case</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBMO Triumphs as US Court Voids $564M Verdict in Ponzi Scheme Case\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-09-17 00:56 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/bmo-triumphs-us-court-voids-165600504.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Bank of Montreal BMO wins major legal victory in the Petters Ponzi scheme case. The company's U.S. subsidiary, BMO Bank National Association, was granted a verdict by the district court after the U.S....</p>\n\n<a href=\"https://finance.yahoo.com/news/bmo-triumphs-us-court-voids-165600504.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BMO","symbol_name":"蒙特利尔银行","start_time":0,"source_url":"https://finance.yahoo.com/news/bmo-triumphs-us-court-voids-165600504.html","article_id":"2468299018","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/JMCxxMRv.2_xNPQLIEvj4g--~B/aD00MTM7dz02MjA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/95985fbd351cc15ddaeb3ac3a12964dc"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2468299018","pubTimestamp":1726505760,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Bank of Montreal BMO wins major legal victory in the Petters Ponzi scheme case. The company's U.S. subsidiary, BMO Bank National Association, was granted a verdict by the district court after the U.S. Court of Appeals for the Eighth Circuit overturned a previous jury verdict that had ordered one of its subsidiaries, Harris Bank, to pay $564 million.As a result of this outcome and in line with applicable accounting standards, BMO anticipates reversing its current provision of CAD$1.19 billion , which includes accrued interest related to this matter. This reversal is expected to result in an after-tax recovery of CAD$875 million  to be recorded in the fourth quarter under the Corporate Services segment and will be treated as an adjusting item.Over the past six months, shares of BMO on the NYSE have gained 2.1% against the industry’s decline of 5.9%.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BMO":"蒙特利尔银行","BBAR":"BBVA Banco Frances S.A.","GGAL":"加利西亚金融","BK4207":"综合性银行"},"translate_title":"美国法院宣布庞氏骗局案5.64亿美元判决无效，BMO获胜","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BBAR":1,"BMO":1,"GGAL":1},"content_text":"Bank of Montreal BMO wins major legal victory in the Petters Ponzi scheme case. The company's U.S. subsidiary, BMO Bank National Association, was granted a verdict by the district court after the U.S. Court of Appeals for the Eighth Circuit overturned a previous jury verdict that had ordered one of its subsidiaries, Harris Bank, to pay $564 million.\nBackground of BMO’s Lawsuit\nThe lawsuit concerns a Ponzi scam run by Thomas J. Petters and a few associated people and businesses (collectively, Petters), who operated a deposit account at a predecessor bank, M&I Marshall and Ilsley Bank. Petters deceived investors into believing that he and his associates were financing the purchase of consumer electronics for resale to major retailers. However, he never actually made any purchases and instead used funds from new investors to pay returns to earlier ones. The lawsuit against BMO was filed by Douglas Kelley. Kelley is the court-appointed receiver who is recovering losses generated by the Ponzi scheme. Kelley claimed that the M&I had knowledge of the scheme and ignored red flags.\nRecent Development in BMO’s Lawsuit\nThe U.S. District Court in St. Paul, MN, delivered a verdict in favor of BMO, overruling the November 2022 jury verdict and ordered the case against BMO brought by trustee Douglas Kelley to be dismissed. The U.S. Court of Appeals determined that the trustee effectively represented Petters Co., which was found to be equally or more at fault than M&I. As a result, the court ruled that BMO was not liable under the legal doctrine of \"in pari delicto,\" which holds that a party cannot seek recovery if they are equally at fault.\nHow BMO Will Benefit From Latest Verdict\nAs a result of this outcome and in line with applicable accounting standards, BMO anticipates reversing its current provision of CAD$1.19 billion ($926.2 million), which includes accrued interest related to this matter. This reversal is expected to result in an after-tax recovery of CAD$875 million ($644 million) to be recorded in the fourth quarter under the Corporate Services segment and will be treated as an adjusting item.Over the past six months, shares of BMO on the NYSE have gained 2.1% against the industry’s decline of 5.9%. \nImage Source: Zacks Investment Research\nCurrently, BMO carries a Zacks Rank #3 (Hold).\nForeign Stocks Worth Considering\nSome better-ranked bank stocks worth considering are Banco BBVA Argentina S.A. BBAR and Grupo Financiero Galicia S.A. GGAL, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks Rank #1 stocks here.Estimates for BBAR’s current-year earnings have jumped 27% in the past 60 days. The company’s shares have jumped 40.9% over the past six months.Estimates for GGAL’s current-year earnings have surged 63.9% upward in the past month. The company’s shares have surged 81.8% over the past six months.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nBank Of Montreal (BMO) : Free Stock Analysis Report\nGrupo Financiero Galicia S.A. (GGAL) : Free Stock Analysis Report\nBBVA Banco Frances S.A. (BBAR) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"hasMoreComments":false,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}