OAKLAND, Calif. — The University of California secured a $2.4 billion settlement from the Canadian Imperial Bank of Commerce for its role as an adviser to Enron Corp. If approved, it would be the third large settlement the university has won as lead plaintiff representing Enron investors. The university alleged that "CIBC participated in an elaborate scheme to defraud investors," a UC press release said.
"With this CIBC settlement, UC has now recovered more than $7 billion for investors —more than any other securities case in history," said James E. Holst, the university's general counsel, in the news release. That figure tops the $6.1 billion recovered in the WorldCom Inc. litigation.
CIBC did not admit to any wrongdoing, according to the release, which also said the bank "agreed to the settlement solely to eliminate the uncertainties, burden and expense of further protracted litigation."