A national securities class action was filed against the Toronto-Dominion Bank (“TD”) as a result of the release of documents which failed to disclose material facts relating to increased revenues in TD’s Canadian Retail Business Segment and which contained materially false and misleading statements with regard to TD’s business practices, risks management and ethics policies. The documents released by TD failed and omitted to disclose that the increase in revenue was driven by an unethical, illegal and predatory sales program (the, “Pressure Selling Program”).
Through its Pressure Selling Program TD imposed continuously increasing and unrealistic sales targets on employees and monitored whether they attained them. TD subjected employees who failed to reach their sales targets to sanctions which included reprimands, imposed trainings and termination.
TD’s Pressure Selling Program placed extreme pressure on, and induced TD employees to (i) sell clients products and services that were unnecessary, inappropriate and/or unsolicited, (ii) upsell clients more expensive products and services although these were unnecessary, inappropriate and/or unsolicited, (iii) omit to disclose to clients the true costs or risks involved in products, services or programs offered, (iv) illegally subscribe, enroll or upgrade clients into programs or services without their knowledge or consent (such as overdraft protection), and (v) illegally increase clients’ credit lines without their knowledge or consent.
On Friday March, 10, 2017, following the CBC’s investigative reports, TD’s shares listed on the TSX fell 5.55% losing $3.88 to close at $66.00, down from the previous day’s close at $69.88. On March 10, 2017, the CBC posted an article which stated:
“Shares in Toronto-Dominion Bank posted their biggest loss since 2009 on Friday after the publication of a second CBC News story uncovering how employees admit they have broken the law at their customers’ expense in a desperate bid to meet sales targets and keep their jobs.”
The Class Members are comprised of the following:
I. Primary Market Sub-Class: All persons and entities, wherever they may reside or may be domiciled, who, from December 3, 2015 to March 9, 2017 (inclusively), acquired the Toronto-Dominion Bank’s securities in an Offering and held some, or all of those securities until the end of the Class Period; and
II. Secondary Market Sub-Class: All persons and entities, wherever they may reside or may be domiciled, who, from December 3, 2015 to March 9, 2017 (inclusively), acquired the Toronto-Dominion Bank’s securities in the secondary market and held some, or all of those securities until the end of the Class Period; and
1. are resident in Canada or were resident in Canada at the time of such acquisition, regardless of the location of the exchange on which they acquired the Toronto-Dominion Bank’s securities; or
2. acquired the Toronto-Dominion Bank’s securities in the secondary market in Canada or elsewhere other than in the United States;
Excluded from the Class are the Defendants, members of their immediate families and their legal representatives, heirs, successors or assigns and the directors, officers, subsidiaries, and affiliates of the Toronto-Dominion Bank and its subsidiaries as well as any entity in which the Toronto-Dominion Bank has or had a controlling interest.
The Class Period spans from December 3, 2015 to March 9, 2017 (inclusively).
The proposed class action is currently pending before the Superior Court of Quebec. If you fit the criteria above, you are automatically included in the Class. Nevertheless, if you would like to receive updates, you may sign up for mailings or contact us at firstname.lastname@example.org.