Trailer Fee Class Actions Allowed to Proceed
An Ontario court has ruled that proposed class action lawsuits against fund managers can proceed.
The lawsuits involve different investor groups and are not prohibited by earlier class action certifications.
- BMO Investments Inc.
- Natcan Trust Co.
- National Bank Investments Inc.
These firms appealed a lower court ruling from November 2024, which rejected their motions to dismiss new trailer fee class actions.
The court upheld the lower court decision, allowing the lawsuits to proceed without requiring leave from the court.
The firms were targeted by proposed class actions filed in 2018 over trailer fee payments to discount brokers.
Author's summary: Court allows trailer fee class actions to proceed against fund managers.