Ontario Court Certifies Class Action Lawsuit Against TD Bank Over AML Failures
The Ontario Superior Court has certified a class action lawsuit against TD Bank and its leadership, alleging that systemic anti-money laundering failures were misrepresented to investors.
On November 3, 2026, the Ontario Superior Court of Justice granted leave to proceed with a class action lawsuit against The Toronto-Dominion Bank (TD) and several of its senior executives. Justice Janet Leiper found that plaintiffs provided sufficient evidence to suggest the bank misled shareholders regarding its anti-money laundering (AML) compliance controls between December 2021 and October 2024.
The lawsuit centers on allegations that TD deliberately deprioritized regulatory compliance to favor profit margins. These deficiencies ultimately led to the bank's U.S. subsidiaries pleading guilty to money laundering conspiracy charges, resulting in over US$3 billion in fines and a regulatory cap on asset growth. Investors claim that TD’s failure to disclose these systemic risks led to a CA$30 billion drop in market capitalization when the underlying issues became public.
In her ruling, Justice Leiper noted that the bank’s communications regarding its risk management strategy were contradicted by the facts subsequently established by the U.S. Department of Justice. While the bank denies the allegations, the certification of the class action allows the lawsuit to move toward trial. The court will now examine the claims of whether the bank violated its continuous disclosure obligations to shareholders.