Overview: TD Mutual Funds Class Action Lawsuit
In 2025, Canadian investors who held units of TD Mutual Funds through discount brokers are affected by a major class action settlement approved by the Ontario Superior Court of Justice. The case centred on trailing commissions — fees paid out of fund assets to discount brokers, allegedly without the delivery of meaningful financial advice or value to investors. (Trailing Commissions Settlement)
Trailing commissions are ongoing payments from mutual fund trusts to intermediaries for service or advice, even when that advice may not be provided by the broker involved. The lawsuit argued these commissions reduced investors’ returns unfairly when no advisory service was rendered. (Newswire)
Key Settlement Details
The class action settlement totals CAD $70.25 million and applies to persons who held units of TD mutual funds through a discount broker at any time on or before September 11, 2024. (Newswire)
To receive compensation, eligible investors must **submit a claim form by December 20, 2025, through the official settlement site. (Trailing Commissions Settlement)
Discount brokers relevant to this case include:
- TD Direct Investing
- Qtrade
- BMO InvestorLine
- RBC Direct Investing
- Scotia iTRADE
- Questrade
- Wealthsimple
…among others. (Trailing Commissions Settlement)
Learn more about how mutual funds and trailing commissions work in our related guide: Mutual Funds Explained: Fees, Risks & Returns (/mutual-funds-fees-and-returns-guide).
Who Is Eligible to Claim?
You may be eligible if you:
- Held TD mutual fund units through a discount broker, and
- Held them before September 11, 2024.
If you never held units through a discount broker — for example, you held them through a financial advisor or directly with TD Asset Management — a separate settlement may apply. (Trailing Commissions Settlement)
Check your status and eligibility at the official settlement site:
www.TrailingCommissionsSettlement.ca (Trailing Commissions Settlement)
For investors with holdings outside discount brokers, read more in our post: Understanding Your Investment Fee Rights (/investment-fee-rights-guide).
Why This Lawsuit Matters
Trailing commissions historically compensated brokers for ongoing client service and advice. However, discount brokers typically do not provide personalised advice — raising questions about whether these fees were justified for the class members concerned. (Newswire)
The case highlights broader concerns in the mutual fund industry about fee transparency and value delivered to investors. As mutual fund investing continues to evolve, this settlement may influence future practices and investor awareness.
How to File a Claim
Eligible class members must complete the official claim form on the settlement site before the December 20, 2025 deadline. (Trailing Commissions Settlement)
To prepare your claim, you may need:
- Your investment account details
- Dates and ownership information of your TD mutual funds
- Documentation of your holdings (e.g., statements)
Detailed instructions are available at the settlement administrator’s portal: www.TrailingCommissionsSettlement.ca (Trailing Commissions Settlement)
External Sources & References
- Ontario Superior Court approves CAD $70.25M TD settlement — Official settlement notice (Newswire)
- Trailing Commissions Settlement details and claim instructions — Settlement site (Trailing Commissions Settlement)
- History of class action and trailing commission allegations — Initial filing summary (Newswire)
- Class action deadline approaching and practical filing reminder — Narcity report (Narcity)
Conclusion
The TD mutual funds class action lawsuit and resulting CAD $70.25 million settlement represent an important legal development for investors who held mutual funds through discount brokers in Canada. If you are eligible, the December 20, 2025 deadline to file a claim is approaching, making it critical to act now if you believe you qualify.
Understanding the lawsuit, eligibility factors, and claim procedures can help you maximise your recovery and make informed investment decisions going forward.