Shareholders allege TD Bank misrepresented anti-money-laundering deficiencies, causing a stock drop
Sotos Class Actions has launched a proposed class-action lawsuit against TD Bank, citing ongoing investigations into the bank's anti-money-laundering program in the United States, as reported by BNN Bloomberg.
The lawsuit represents shareholders who bought TD shares between August 26, 2021, and June 3, 2024.
The suit claims TD Bank misrepresented systemic deficiencies in its anti-money-laundering controls, leading to a significant drop in the bank's stock price once these deficiencies were disclosed.
TD has faced financial penalties due to the ongoing US regulatory inquiry into its anti-money-laundering compliance program, which it revealed last year.
TD Bank stated that the allegations in the proposed class action are without merit and plans to contest them. The bank asserts that its disclosures and public statements comply with securities law and its responsibilities to shareholders.
