11:46 AM EDT, 09/13/2024 (MT Newswires) -- The Bank of Montreal ( BERZ ) (BMO.TO, BMO) will reverse a $1.19 billion charge after winning an appeal of a U.S. jury verdict holding the bank responsible for a Ponzi scheme, the Canadian Press reported on Friday.

The Eighth Circuit Court of Appeals overturned the 2022 verdict and instructed the district court to enter a judgment in favor of the bank's U.S. subsidiary, BMO Bank National Association, the report said.

The original lawsuit concerned a Ponz1 scheme operated by Thomas J. Petters and others that had an account at the M&I Marshall and Ilsley Bank, which BMO acquired in 2011.

The bank will reverse the charge it took for the original decision and will record an after-tax recovery of $875 million in its fiscal fourth-quarter results.

BMO shares were last seen up $0.91 to $116.51 on the Toronto Stock Exchange.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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