Trailer Fee Class Actions Allowed to Proceed
Proposed class action lawsuits against fund managers over trailer commission payments 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 the new trailer fee class actions, citing that the plaintiffs did not require leave from the court to bring their legal actions.
Author's summary: Lawsuits against fund managers over trailer fees can proceed.