Investor Alert: Toronto-Dominion Bank Hit with Class Action Lawsuit Over Alleged Securities Violations
Robbins Geller Rudman & Dowd LLP, a premier securities litigation firm, has announced that investors who acquired securities in The Toronto-Dominion Bank ("TD Bank") (NYSE: TD) between February 29, 2024, and October 9, 2024, may qualify to lead a class action lawsuit against the bank. Investors who suffered substantial losses during this period have until December 23, 2024, to seek the position of lead plaintiff.
The lawsuit, formally titled Tiessen v. The Toronto-Dominion Bank, No. 24-cv-08032 (S.D.N.Y.), has been filed in the Southern District of New York and alleges that TD Bank, along with certain executives, engaged in violations of the Securities Exchange Act of 1934. These alleged violations center around claims that the bank provided false or misleading statements regarding the state of its anti-money laundering (AML) program. The complaint asserts that TD Bank concealed or downplayed significant issues within its AML operations, failing to disclose the possibility of regulatory sanctions or other punitive measures that could affect the bank's growth trajectory.
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Allegations in the Case
According to the lawsuit, TD Bank allegedly portrayed its AML program in a misleadingly positive light, omitting key information about its operational deficiencies. The lawsuit claims that TD Bank’s failure to provide a full picture of its AML compliance posed risks to investors who relied on this information. The complaint suggests that the bank’s lack of transparency prevented investors from understanding the potential repercussions of these regulatory failings on TD Bank’s financial stability and growth.
The case also notes that TD Bank markets itself in the United States under the “TD Bank” and “America’s Most Convenient Bank” brands, and that its failure to address AML concerns could compromise consumer trust and regulatory standing in the U.S. market.
October 2024 Regulatory Disclosure and Stock Impact
On October 10, 2024, TD Bank disclosed the results of multiple U.S. regulatory investigations. As part of its resolution with authorities, the bank agreed to pay a substantial penalty of $3.09 billion. In addition to this punitive payment, an asset cap was imposed on TD Bank’s U.S. subsidiaries, limiting them to a collective maximum of $434 billion in assets as of September 30, 2024. Furthermore, TD Bank’s U.S. operations are now subject to stricter oversight and approval processes for any future product, service, or market expansions.
In a statement released by the U.S. Department of Justice, TD Bank was described as the largest bank in U.S. history to plead guilty to Bank Secrecy Act violations and as the first U.S. bank to plead guilty to conspiracy to commit money laundering. Following this announcement, TD Bank’s stock price plummeted by over 10%, underscoring investor concerns about the potential long-term impacts of these regulatory penalties and caps.
Role of the Lead Plaintiff and the Investor's Path Forward
The Private Securities Litigation Reform Act of 1995 provides investors who purchased or acquired TD Bank securities during the specified Class Period with the opportunity to seek appointment as the lead plaintiff in this class action lawsuit. The lead plaintiff, typically the investor with the greatest financial interest, directs the lawsuit on behalf of all class members. By assuming this role, the lead plaintiff actively influences litigation strategy, including the selection of legal counsel and the pursuit of specific claims on behalf of the class.
While participation as the lead plaintiff is not required to benefit from any future settlement or judgment, serving in this role allows investors to play a central part in shaping the outcome of the case. Any investor appointed as lead plaintiff can select Robbins Geller Rudman & Dowd LLP or another firm of their choice to litigate the case.
Robbins Geller Rudman & Dowd LLP: Leader in Securities Class Action Litigation
Robbins Geller Rudman & Dowd LLP is widely recognized as one of the foremost securities litigation firms in the world. Specializing in representing investors in securities fraud cases, Robbins Geller has repeatedly secured significant monetary recoveries for its clients. Over the past decade, the firm has led in ISS Securities Class Action Services rankings, recovering $6.6 billion for investors in securities-related class action cases—outperforming other law firms in this area by over $2.2 billion in recent years.
With a team of 200 lawyers across 10 offices, Robbins Geller has achieved some of the largest securities class action recoveries in history. Among its notable cases, the firm secured a record $7.2 billion settlement in In re Enron Corp. Securities Litigation, marking the largest securities class action recovery to date.
Next Steps for Impacted TD Bank Investors
For TD Bank investors impacted by the alleged misrepresentations, the deadline to seek appointment as lead plaintiff in this case is December 23, 2024. Investors can find more information or apply to participate in the class action by visiting Robbins Geller Rudman & Dowd LLP’s TD Bank Class Action Lawsuit page.
Those interested can also reach out to attorneys J.C. Sanchez or Jennifer N. Caringal of Robbins Geller at 800-449-4900 or via email at info@rgrdlaw.com.
Contact Information:
Robbins Geller Rudman & Dowd LLP
Attorneys: J.C. Sanchez, Jennifer N. Caringal
655 W. Broadway, Suite 1900, San Diego, CA 92101
Phone: 800-449-4900
Email: info@rgrdlaw.com
This case could serve as a landmark in securities fraud litigation, potentially setting a precedent on corporate transparency and compliance obligations for financial institutions operating across international borders.
