Ontario court approves $100 million settlement of foreign exchange class action
TORONTO, June 30, 2021 /CNW/ - An Ontario judge has approved the settlement of a class action against BMO Nesbitt Burns Inc., BMO InvestorLine Inc., and BMO Trust Company for a total of $100 million.
The plaintiffs alleged that the defendants imposed an undisclosed fee on foreign exchange transactions made in registered accounts held with the defendants. The case was commenced in 2006 by James R. MacDonald, and was certified as a class action in January 2012. The Class is represented by Paliare Roland Rosenberg Rothstein LLP.
The Class includes individuals resident in Canada who held registered accounts, such as RRSPs, RESPs, and TFSAs, with the defendants and had a currency conversion performed in their account between June 14, 2001 and September 6, 2011 at BMO InvestorLine Inc., and between October 1, 2002 and September 6, 2011 at Nesbitt Burns Inc. There are approximately 135,000 class members.
In February 2020, the Ontario Superior Court of Justice found the defendants liable to the class members for breach of trust, breach of fiduciary duty, and breach of contract, and required the defendants to return their profits on the amounts charged to the class members. A reference was scheduled to be heard in January 2021 to determine the amount of the defendants' profits.
Prior to the hearing of the reference, the parties reached a proposed settlement of the class action. Under the settlement, the defendants will make an all-inclusive payment of $100 million. Money will be distributed to eligible class members either directly into their registered account or, if their account is no longer open, by cheque mailed to the class member. Like all class action settlements in Ontario, the settlement was subject to court approval.
On June 17, 2021, the Ontario Superior Court of Justice approved the parties' proposed settlement. The Court commented that it was a "genuinely commendable settlement".
Payments will be made directly to eligible class members. Individuals do not need to take any steps at this time.
The process of distributing money to eligible class members will occur over the coming months. Please check the case website for updates: rrspclassaction.com
Further information about the claim and settlement, including a copy of the court's reasons for approving the settlement, is available at: rrspclassaction.com.
SOURCE Paliare Roland Rosenberg Rothstein LLP
Odette Soriano and Paul Davis at Paliare Roland Rosenberg Rothstein LLP. Ms. Soriano may be reached [email protected]. Mr. Davis may be reached at [email protected].
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