The Toronto-Dominion Bank (TD) Investigation

The investigation centers on Toronto-Dominion’s repeated assurances that it established and maintained policies and programs (including its Anti-Money Laundering (“AML”) program) reasonably designed to achieve and maintain its compliance with the laws and regulations that apply to it.

The company and its subsidiaries, including TD Bank N.A. (“TDBNA”) and TD Bank US Holding Company (“TDBUSH”) are collectively known as TD Bank Group.

Toronto-Dominion’s statements were called into question by May 3, 2024, when TD Bank Group CEO Bharat Masrani admitted “I regret that there were serious instances where the Bank’s AML fell short and did not effectively monitor, detect, report or respond.” This admission drove the price of Toronto-Dominion shares sharply lower that day.

The seriousness of TD Bank Group’s lapses became apparent on October 10, 2024, when the U.S. Department of Justice announced that TDBNA and TDBUSH pleaded guilty to violating the Bank Secrecy Act and conspiracy to commit money laundering and agreed to pay over $1.8 billion in penalties.

The DOJ found that TD Bank intentionally did not automatically monitor a staggering 92% of transactions, or $18.3 trillion, from January 1, 2018 to April 12, 2024.

Deputy Attorney General Lisa Monaco said “[f]or years, TD Bank starved its compliance program of the resources needed to obey the law.”

Attorney General Merrick Garland said “[b]y making its services available for criminals, TD Bank became one[,]” adding “[t]oday, TD Bank also became the largest bank in U.S history to plead guilty to conspiracy to commit money laundering[]” and “TD Bank chose profits over compliance with the law.”

This news drove the price of Toronto-Dominion shares sharply lower again.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the TD investigation about?

We are looking into the extent to which Toronto-Dominion’s internal audit warned top executives of problems leading to this historic event and the amount of ill-gotten gains.

WHAT SHOULD I DO?

I worked at TD. What should I do?

If you were an employee of TD, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in TD, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any TD investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.