[JURIST] Leading Wednesday's corporations and securities law news, the Canadian Imperial Bank of Commerce (CIBC) [corporate website] will pay $125 million to settle with US regulators. The SEC and the state of New York accused CIBC of lending money to hedge funds that engaged in illegal market timing trades. In a press release, the SEC said that CIBC will pay $100 million in a disgorgement to investors and $25 million in fines. CIBC's CEO said in a press release that his bank had "added policies and procedures to enhance our abilities to monitor and recognize such activities if they ever were to occur again." Bloomberg has more.
In other corporations and securities law news...
- France's Prime Minister plans to fight any takeover bids for Danone Group [corporate website] from foreign investors. Dominique de Villepin [Wikipedia profile] vowed to "defend France's interests" when asked about rumors that US-based PepsiCo [corporate website] is planning a hostile takeover of the French dairy maker with annual sales of $16.5 billion. Danone has pledged to fight a takeover and may be planning to acquire other companies to strengthen its position [Bloomberg report]. Reuters has more.
- Three major insurance companies have settled with California over allegations that they used kick-backs to win more business. The California Insurance Commission [official website] accused First American Corp., Fidelity National Financial Inc., and LandAmerica Financial Group Inc. of sending over $25 million to builders, realtors, and lenders in exchange for business. In a press release, the Commission said that the insurance companies will pay back all of the money and also pay $12 million in fines. Reuters has more.