Investing with National Bank? You might be part of a new class-action lawsuit

Mar 29 2023, 3:40 pm

A new class-action lawsuit has been filed against National Bank, which boasts of being the sixth-largest bank in Canada.

Kalloghlian Myers LLP, a Toronto-based law firm that specializes in class actions, civil litigation, and investor protection, filed the lawsuit against National Bank Investments Inc.

The class in this case includes anyone who has bought units of National Bank mutual funds with the help of an investment advisor. If you bought one or more of these units before June 2022, the law firm advises you to contact them to figure out your options.

The allegations

On Tuesday, Kalloghlian Myers LLP shared the allegations against National Bank, which include “breach[ing] its trust obligations to investors by wrongfully paying commissions from its mutual funds to benefit itself.”

The suit further claims that these mutual fund commissions were “inappropriately paid to discount brokerages for providing advice to purchasers, even though those brokerages were not authorized to provide advice,” adding that the commissions were instead “improperly used as incentives to encourage discount brokerages to sell National Bank mutual funds, violating National Bank’s trust obligations to investors.”

It also alleges that these improper payments caused all mutual investors to experience investment losses.

Garth Myers, one of the lawyers involved in the case, warned Canadians who are saving for their retirement to ensure their bank is looking out for them, instead of the other way around.

“We allege National Bank’s conduct over many years hurt the retirement savings of thousands of Canadians,” Myers said. “We are doing what we can to seek justice and compensation.”

If you fall into the defined class category, email the law firm here or call (647) 243-7381.

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