Mr. Jeff Roman reports

EIGHTH CIRCUIT COURT OF APPEALS OVERTURNS PETTERS JUDGEMENT, IN BMO'S FAVOUR

The United States Court of Appeals for the Eighth Circuit reversed a prior jury verdict and instructed the district court to enter judgement in favour of Bank of Montreal's United States subsidiary, BMO Bank National Association. The lawsuit related to a Ponzi scheme carried out by Thomas J. Petters and certain affiliated individuals and entities (collectively, Petters) that operated a deposit account at a predecessor bank, M&I Marshall and Ilsley Bank.

"We are very pleased with the decision of the United States Court of Appeals for the Eighth Circuit," stated a BMO spokesperson.

As a result of this outcome, in accordance with applicable accounting standards, BMO expects to reverse its current provision of $1,190-million, which includes accrued interest, with respect to this matter, the details of which are set out in BMO's continuous disclosure material, resulting in an expected after-tax recovery of $875-million to be recorded in the fourth quarter in the corporate services segment and treated as an adjusting item.

About Bank of Montreal

BMO Financial Group is the eighth-largest bank in North America by assets, with total assets of $1.4-trillion as of July 31, 2024. Serving customers for 200 years and counting, BMO is a diverse team of highly engaged employees providing a broad range of personal and commercial banking, wealth management, global markets, and investment banking products and services to 13 million customers across Canada, the United States and in select markets globally. Driven by a single purpose, to Boldly grow the good in business and life, BMO is committed to driving positive change in the world, and making progress for a thriving economy, sustainable future and inclusive society.