Online Broker Trailing Fee Class Action
Koskie Minsky LLP has commenced a class proceeding concerning the payment of trailing commissions to Canadian online trading brokers.
The defendants, Canadian discount brokerages, operate online investment platforms, and sell mutual fund products to investors. Trailing commissions are paid to the defendants by companies that manage and operate mutual funds, and are paid out of the value of an investor’s investments.
It is alleged that trailing commissions are designed to compensate the broker for advice and services that the broker has provided to the investment client. However, discount brokers cannot and do not provide advice or services to investors. It is alleged that these commissions are inappropriate and unlawful and that these funds should be returned to investors.
The class action is brought on behalf of all persons who purchased mutual funds through a Canadian defendant discount brokerage.
Class Action Information Form
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Latest Developments
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April 22, 2024
The Plaintiffs’ have made a motion to the Court of Appeal for Ontario, seeking leave to appeal from the decision of the Divisional Court.
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January 24, 2024
The Divisional Court dismissed the Plaintiffs’ appeal from Justice Belobaba’s dismissal of the certification motion. A copy of the Divisional Court’s decision is available here
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December 4, 2023
The Divisional Court heard the Plaintiffs’ appeal from Justice Belobaba’s dismissal of the certification motion.
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February 22, 2023
Justice Belobaba dismissed the Plaintiffs’ motion for certification on January 20, 2022. A copy of the decision is available here. The plaintiff’s appeal is scheduled to be heard by the Divisional Court in December 2023.
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January 30, 2023
Justice Belobaba dismissed the Plaintiffs’ motion for certification on January 20, 2022. A copy of the decision is available here.
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November 7, 2022
Class counsel completed one day of mediation with one of the Defendants. The mediation is continuing.
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September 27, 2022
The motion for certification was heard by Justice Belobaba on September 26 and 27, 2022. The decision remains under reserve.
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January 28, 2022
The motion for certification is scheduled for September 26-27, 2022. At this two-day hearing, the Court will hear arguments on why this lawsuit should be permitted to proceed as a class action.
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April 22, 2024
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News Releases and Reports
- January 17, 2020 Koskie Minsky Brings Online Broker Trailing Fee Class Action
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Documents
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FAQS
What is a class action?
A class action is a lawsuit which provides a method for a large group of people with common claims to join together to advance one large claim. Class actions are a more efficient and cost-effective way for groups of people with common claims to gain access to the legal system and seek justice.
What does certification mean?
In order for an action to proceed as a class action, the court must determine whether it is appropriate for the case to be treated as a class action. Some of the factors the courts consider are the extent to which the claims of the class
members are common, and whether a class action is preferable to other methods (such as individual actions) of advancing the issues. The decision as to whether a class action should be certified takes place at a certification hearing and is decided by a judge. If certified, a representative plaintiff will advance the action on behalf of all of the class members.How do I know if I am a Class Member?
The certification order will always contain a description of who is a class member. We post the certification orders in our actions so that you can review them. You do not need to “sign up” to become involved in a class action. If you are included in the class description, you are automatically a class member who will be affected by the outcome of the class action unless you decide to “opt out”.
Are Class Members notified of the certification of the class proceeding?
Yes. After the claim has been certified, the court will authorize notice to be given to the members of the class.
Can I opt out of a class action and pursue independent legal action?
Yes. When a class action is certified, class members are always given an opportunity to opt out of the action. A deadline is imposed for opting out. If you do not opt out by the given deadline, class members will be bound by the outcome of the class action, whether it is successful or unsuccessful. If you opt out, you will not receive any benefit if the action is successful.
Will there be any cost to class members for legal fees?
Typically, class actions are handled on a contingency fee basis, which means that the class action lawyers will be paid only if the class action is successful at trial or settled. In that case, class counsel fees may be paid by the defendants or out of the settlement or judgment proceeds as approved by the court. In addition, the plaintiff may seek funding assistance from the Class Proceeding Fund which, if funding is granted, may provide funding for disbursements.
I still have questions…
Please feel to contact us by using the contact information on this site.
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Contacts
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