Investors Cite Unethical, High Pressure Sales in TD Bank Class Action Lawsuit

A class action lawsuit against TD Bank alleging that it pressures tellers to sell customers unneeded products to boost profits is moving forward. 

The lawsuit, initially filed in 2015, claims TD Bank lied to investors about the high-pressure tactics and allege values on TD Bank-related securities were inflated as a result. 

Shares in TD Bank stock sank more than 5.5 percent in 2017 after a CBC investigation revealed unrealistic sales targets paired with unethical practices led to a toxic work environment.

Hundreds of former and current TD Bank employees came forward following the investigation’s publication alleging how they were struggling between doing what was right and keeping their jobs. 

“When I come into work, I have to put my ethics aside and not do what’s right for the customer,” one teller interviewed by the CBC at the time said. 

The class action lawsuit highlights how investors were told a different story by TD Bank. 

During related presentations, the plaintiffs were presented with material touting “a legendary customer experience” and providing “an extraordinary place to work.” 

Investors were promised TD Bank policies met “the highest standards of integrity, professionalism, and ethical behaviour,” CBC reports.

Instead, TD Bank employees told the CBC they sometimes knowingly broke the law and described a “poisoned,” “stress inducing” workplace with “zero focus on ethics.” 

Investors aren’t necessarily going after TD Bank’s alleged business practices in the lawsuit, University of Windsor law professor told the CBC, but are claiming they would not have purchased TD Bank stock if they knew about the questionable tactics. 

They point to a series of documents handed to investors by TD Bank in 2015 that should have disclosed the “unethical, illegal and predatory” high-pressure policies as evidence they were misled.

In its statement of defense filed this week, TD Bank denies any systemic unethical practices, according to the CBC. 

They’re citing its numerous customer service awards the bank has been given, including its tenth straight year of being recognized by customer satisfaction surveys.

A report published by the Financial Consumer Agency of Canada in 2017 showed banks that overly focus on sales run the risk of misleading customers. 

TD Bank employs more than 81,000 people and as of 2015 operates some 1,200 branches across Canada. 

The class action lawsuit is seeking to represent anyone who bought TD stocks between Dec. 3, 2015 and March 9, 2017. 

Formally, the plaintiffs are accusing TD Bank of violating the Quebec Securities Act. 

Counsel representing the plaintiffs in this class action lawsuit is Shawn K. Faguy of Faguy & Co. Barristers & Solicitors Inc.  

The TD Bank High Pressure Class Action Lawsuit is Majestic Asset Management LLC, et al. v. Turn8 Partners Inc., Case No. 500-06-000914-180, in the Quebec Superior Court.  

Read More Lawsuit & Settlement News:

• TD Bank Accused of Charging Duplicate NSF Fees in Class Action Lawsuit
• Canadian Bank and Credit Union Overdraft & NSF Fee Lawsuit
• Old Republic Insurance Hit With Class Action Lawsuit Seeking School Trip Refunds
• TD Bank Hit With Class Action Lawsuit Over Denied Claims Amid COVID-19