05:44 AM EDT, 09/13/2024 (MT Newswires) -- Bank of Montreal ( BERZ ) said late Thursday that the US Court of Appeals for the Eighth Circuit overturned a prior jury verdict, ruling in favor of its subsidiary BMO Bank, in a case involving a Ponzi scheme carried out by Thomas Petters and associates.

The company said the decision would lead to an expected after-tax recovery of 875 million Canadian dollars ($644.9 million), which would be recorded in Q4 as an adjusting item in the corporate services segment.

Bank of Montreal ( BERZ ) expects to reverse its provision of CA$1.19 billion, including accrued interest, in connection with the matter.

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