Ovitz Sues Canadian Bank in Livent Affair

Entertainment executive Michael Ovitz and an investor group he manages have sued Canadian Imperial Bank of Commerce, alleging the bank acted fraudulently in leading the Ovitz group to invest $20 million in Livent Inc. In court documents, lawyers for Ovitz and Lynx Venture claim Canadian Imperial misrepresented a loan agreement with Livent in 1997, then covered up evidence to aid Livent in receiving the Lynx investment. When Livent, producer of Broadway musicals including “Ragtime” and “Show Boat,” received the $20 million, it quickly paid the money to Canadian Imperial, also known as CIBC, according to the filing in U.S. District Court in Los Angeles. But bank spokeswoman Katherine Gay said CIBC had no knowledge that any letters or agreements were ever concealed, and when it became aware that a transaction may not have been properly disclosed, it immediately notified the company. “At all times we have acted at arm’s length and are certain that all elements of our transactions with Livent were fully fair and open,” Gay said. A spokeswoman for Ovitz declined to comment beyond what was in the court filing. Livent is under U.S. Bankruptcy Court protection.