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SOURCE Oppenheimer Holdings Inc.
NYSE - OPY
NEW YORK, March 15, 2013 /PRNewswire/ - Oppenheimer Holdings Inc. and several
of its affiliates (Oppenheimer) today announced the filing of a breach
of contract action against Canadian Imperial Bank of Commerce and
several of its affiliates (CIBC) in state court in New York City. The
action was filed in connection with a sale of the business and related
assets of CIBC's U.S. capital markets business to Oppenheimer in
January 2008.
As part of the transaction, the parties provided for a deferred purchase
price based on an agreed formula or a minimum payment of $25 million.
The agreed upon formula did not result in any additional payments and
thus the minimum payment amount of $25 million is in dispute as a
result of the breach of contact. Oppenheimer has deposited the $25
million minimum payment in escrow pending the outcome of the legal
proceedings. The deferred purchase price amount would have been
otherwise due in April 2013 absent the breach of the agreements
governing the sale of the business asserted by Oppenheimer in its
complaint. The expense related to the deferred purchase price was
charged to earnings by Oppenheimer over the life of the agreement and
was fully accrued at the end of December 2012.
Company Information
Oppenheimer, through its principal subsidiaries, Oppenheimer & Co. Inc.
(a U.S. broker-dealer) and Oppenheimer Asset Management Inc., offers a
wide range of investment banking, securities, investment management and
wealth management services from 94 offices in 26 states and through
local broker-dealers in 4 foreign jurisdictions. Oppenheimer employs
over 3,500 people. The Company offers trust and estate services
through Oppenheimer Trust Company. OPY Credit Corp. offers syndication
as well as trading of issued corporate loans. Oppenheimer Multifamily
Housing & Healthcare Finance, Inc. is engaged in mortgage brokerage and
servicing. In addition, through Freedom Investments, Inc. and the
BUYandHOLD division of Freedom, Oppenheimer offers online discount
brokerage and dollar-based investing services.
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