Law firm says hearing for court approval will be before year ends
TD Asset Management has agreed to a settlement in respect of trailing commissions paid to discount brokerages – with a $70.25 million price tag.
A class action lawsuit filed on behalf of investors by law firm Siskinds LLP argued that because there was no advice given by discount brokerages, those buying units in TD mutual funds gained no value from the trailing commissions they were charged.
The lawsuit asserted claims on behalf of “all persons, wherever they may reside or be domiciled, who held or hold, at any time on or prior to September 11, 2024, units of a TD mutual fund trust through a discount broker,” Siskinds stated.
The settlement is subject to the approval of the Ontario Superior Court of Justice which will be decided at a hearing on December 19, 2024. The court will also decide on approval of the Class Counsel’s fees which could be up to $17.92 million, plus reimbursement for expenses incurred by Class Counsel in the litigation, plus taxes on the fees and disbursements.
Siskinds said it has filed proposed class actions seeking damages for investors against various mutual fund trustees and managers challenging the trailing commissions they have paid to discount brokers on mutual funds under their management.
Additionally, for those investors who held units of a TD mutual fund other than through a discount broker, there is a separate class action being managed by Kalloghlian Myers LLP with defendants including ScotiaBank (1832 Asset Management L.P.), BMO, CIBC, Mackenzie Financial, National Bank, RBC, and TD.
