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The Ontario Superior Court of Justice has approved a $100 million settlement in a 15-year-old class action lawsuit alleging BMO Trust Co. and other Bank of Montreal affiliates charged registered retirement savings plan (RRSP) clients undisclosed fees.
The BMO class action lawsuit was filed in 2006, according to Investment Executive. A 2020 court ruling found the Bank of Montreal defendants were liable for breaches of trust, contract, and fiduciary duty in charging certain undisclosed foreign exchange fees on the RRSPs and other accounts.
About 135,000 clients affected by the BMO settlement are expected to retrieve at least $25, Investment Executive reported.
No claim form will be required for clients who are eligible to benefit from the Bank of Montreal settlement.
An accounting firm will calculate each Class Member’s payment based on the foreign currency transaction in their accounts.
The $25 minimum and the total from any uncashed cheques are expected to leave $380,000 that will not be distributed to Class Members; this money will instead go cy pres.
Under the terms of the BMO settlement agreement, the first $250,000 of the cy pres amount will be distributed to the Class Action Clinic at the University of Windsor; the second $250,000 will go the United Way of Canada to fund financial literacy programs nationwide.
The Court awarded Class Counsel $20 million.
In his approval of the Bank of Montreal settlement, Justice Edward Belobaba wrote it was “easily approved.”
“The $100 million settlement amount is well within the required zone of reasonableness. … Kudos again to both sides for achieving a reasonable resolution to such a long and hard-fought litigation.”
Were your charged undisclosed foreign exchange fees on your BMO RRSP account? What do you think of the settlement? Let us know in the comments below.
The plaintiff is represented by Michael Eizenga of Bennett Jones LLP and Odette Soriano, Linda Rothstein, Jeffrey Larry, Paul Davis, and Douglas Montgomery of Paliare Roland Rosenberg Rothstein LLP.
The Bank of Montreal RRSP Foreign Exchange Fees Class Action Lawsuit is James MacDonald, et al. v. BMO Trust Co., et al., Case No. 06-CV-316213 CP, in the Ontario Superior Court of Justice.
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One thought on Bank of Montreal Settles Fee Class Action Lawsuit for $100M after 15 Years
I was included in this class action suit against BMO in 2006. I was advised of this suit by letter but I have moved several times since then and I am wondering how I will be found for my portion of the reimbursement? Would they email or phone me as this information has not changed.