Potential class-action lawsuit against TD Bank seeks staggering $6.75B in damages

TD Bank could be hit with a massive class-action lawsuit seeking billions of dollars in damages.

It was filed by plaintiff Gerald Gazarek through Canadian law firm Sotos LLP.

A Notice of Action issued on June 4 claims that TD Bank and some of its directors and officers “misrepresented systemic deficiencies in TD’s anti-money laundering controls and the likely impact on TD’s US operations.”

TD Bank

DW labs Incorporated/Shutterstock

“Following the disclosure of these deficiencies on April 30, 2024, TD Bank’s stock price dropped considerably, giving rise to remedies under Canadian securities legislation,” reads the action.

The lawsuit was filed on behalf of Canadians who bought TD Bank stocks between August 26, 2021, and June 3, 2024.

The notice specifies that the financial institution’s share prices declined over $6 per share, resulting in damages for members of the possible class action.

According to Sotos LLP, retail investor Gazarek purchased 100 shares of TD Bank common stock on the TSX on April 12, 2023, at an average price of $80.70.

The plaintiff is seeking a staggering $6,750,000,000 in damages for the “statutory misrepresentation claims and common law misrepresentation claims” allegedly made by TD Bank.

If you are eligible for the potential class action, a settlement of that size isn’t guaranteed. Sotos LLP says the court will decide at a later date if the case can even proceed and if it’s suitable as a class action.

Canadian TD shareholders don’t need to take any steps at this time to be a part of the case, according to the litigator.

“If the lawsuit is certified, and you are included in the class as defined, you are automatically included in the lawsuit,” reads the Sotos Class Actions site.

If you do want updates and more information on this case, you can fill out a registration form here.

This isn’t the first class-action lawsuit filed against TD Bank. In March, a $15.9 million settlement was reached in a class action regarding non-sufficient funds (NSF) fees.

Daily Hive has reached out to TD Bank and requested comment on this proposed class action.