Trailer Fee Class Actions Allowed to Proceed
Proposed class action lawsuits against fund managers over trailing commissions to discount brokers can proceed, an Ontario court has ruled.
The court upheld a lower court decision, allowing the lawsuits to move forward despite appeals from BMO Investments Inc., Natcan Trust Co., and National Bank Investments Inc.
- The firms were targeted in proposed class actions filed in 2018.
- The lawsuits involve different investor groups.
The court rejected motions to dismiss new trailer fee class actions, finding that the plaintiffs did not require leave from the court to bring their legal actions.
The appeals were made after a lower court ruling in November 2024 rejected the firms' motions to dismiss the lawsuits.
Author's summary: Court allows trailer fee class actions to proceed.