June 21st, 2024

TD Bank to pay US$1.205 billion to settle Stanford Ponzi scheme lawsuit

By The Canadian Press on February 27, 2023.

Toronto Dominion Bank signage is pictured in Ottawa on Wednesday Sept. 7, 2022. TD Bank Group says it will pay US$1.205 billion to settle a lawsuit in connection with a multi-year Ponzi scheme operated by the Stanford Financial Group. THE CANADIAN PRESS/Sean Kilpatrick

TORONTO – TD Bank Group says it will pay US$1.205 billion to settle a lawsuit in connection with a multi-year Ponzi scheme operated by the Stanford Financial Group.

Under the terms of the agreement, TD has settled with the receiver, the official Stanford Investors Committee and other plaintiffs in the litigation.

TD, which provided correspondent banking services to Stanford International Bank Ltd., denied any liability or wrongdoing and maintained that it acted properly at all times.

The bank says it chose to settle the case to avoid the distraction and uncertainty of continuing a long legal proceeding.

TD is expected to report its first-quarter results on Thursday.

As a result of the settlement, the bank says it will take a charge of about C$1.2 billion after tax in the quarter.

This report by The Canadian Press was first published Feb. 27, 2023.

Companies in this story: (TSX:TD)

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