TORONTO
An Ontario court has certified a class-action lawsuit against TD Bank and certain members of its senior leadership team, including former CEO Bharat Masrani, over its anti-money laundering program.
The lawsuit alleges the lender misrepresented long-standing deficiencies in the program between 2021 and 2024 and prioritized profits over regulatory compliance.
TD was fined more than US$3 billion by U.S. regulators in 2024 after pleading guilty to multiple charges related to failures in the program.
The lawsuit says those failures led to its subsidiaries becoming the first banks in U.S. history to plead guilty to conspiracy to commit money laundering.
According to the lawsuit, that caused significant investor losses when the company’s market capitalization dropped by $30 billion.
The defendants in the lawsuit deny the allegations.
TD Bank did not immediately respond to a request for comment.
The case spotlights potential weaknesses in corporate compliance programs and their impact on investor confidence.
The lawsuit alleges that between 2021 and 2024, TD Bank misrepresented deficiencies in its anti-money laundering program, prioritizing profits over regulatory compliance.
This came to a head when the bank pleaded guilty to several charges in 2024, resulting in a massive fine exceeding US$3 billion by U.S. regulators.
The lawsuit claims these failures had a significant impact on the bank's market capitalization, leading to a $30 billion loss for investors.
While TD Bank and its leadership deny these allegations, they have yet to provide an official comment on the matter.
For Ontario residents, particularly those who have invested in TD Bank, this lawsuit underscores the importance of corporate transparency and accountability.
The alleged deficiencies in TD's anti-money laundering program and the subsequent financial penalties highlight the risks investors face when companies fail to comply with regulatory standards.
This situation could potentially lead to changes in how financial institutions manage and disclose compliance-related matters.
Investors should stay informed about the progress of this case and consider their legal options if they experience financial losses due to corporate misconduct.
As an investor in Ontario, you have the right to transparency and truthful disclosures from the companies you invest in.
Under Canadian securities law, corporations are required to disclose material information that could affect an investor's decision-making.
If you believe you've suffered financial losses due to misrepresentation or non-disclosure, it's crucial to understand that you may have legal options to pursue compensation.
The Ontario Securities Commission provides resources for investors to understand their rights and how to report grievances.
Consulting with qualified legal professionals can help you determine the viability of your claim and guide you through the litigation process.
While the lawsuit is still in progress, it could lead to changes in how TD Bank manages its compliance programs and investor communications.
Handling the complexities of class-action lawsuits and investor rights can be overwhelming, particularly when dealing with large financial institutions.
This story was written by the e2gold.ca newsroom from reporting by BNN Bloomberg, Toronto Star and UL Lawyers. Quotes are checked word for word against that reporting.