TD Bank is facing multiple class action lawsuits following an unprecedented $3.09 billion settlement with US authorities over widespread anti-money laundering (AML) violations.
The lawsuits, filed by Bragar Eagel & Squire and Pomerantz, allege that TD Bank misled investors and failed to disclose critical compliance violations, resulting in significant financial losses for shareholders after the market reacted to the settlement.
Key points:
TD Bank Agrees to $3.09 Billion Settlement for Systemic AML Violations 2014–2022
The bank pleaded guilty to a felony, becoming the first major U.S. financial institution to do so regarding AML violations.
The class action lawsuits allege that TD Bank misled investors and failed to disclose regulatory failures.
TD's stock price fell more than 10% after the settlement was announced.
Bragar Eagel & Squire ( link ) and Pomerantz ( link ) are representing investors in lawsuits against TD Bank for making misleading statements.
Brief description:
In an unprecedented move, TD Bank pleaded guilty to a felony in connection with a $3.09 billion AML settlement, revealing its failure to control more than $18.3 trillion in transactions and allowing $671 million to be laundered through its accounts. The revelations outraged investors and led to at least two major class-action lawsuits. Both Bragar Eagel & Squire and the Pomerantz Law Firm accuse TD Bank of making false and misleading statements about its compliance practices, leading to inflated stock prices and significant losses when the bank's compliance violations came to light.
Actionable information:
The TD Bank case demonstrates the serious financial and reputational risks that arise from inadequate compliance controls, particularly in relation to AML obligations. Financial institutions should prioritize modernizing their AML systems and provide transparency to investors to avoid such pitfalls. This case also highlights the importance of timely disclosure of compliance risks to protect shareholder interests.
