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Toronto-Dominion Bank (TD) Subsidiaries Plead Guilty to Violating Bank Secrecy Act and Conspiracy to Commit Money Laundering Hagens Berman
Globe Newswire 9-Dec-2024 1:41 PM
SAN FRANCISCO, Dec. 09, 2024 (GLOBE NEWSWIRE) -- On October 23, 2024, Moody's downgraded the long-term ratings of The Toronto-Dominion Bank (NYSE:TD) and its U.S. subsidiaries in response to the company's guilty plea earlier in the month to having engaged in a conspiracy to commit money laundering and agreement to pay a $3 billion fine.
The ratings downgrade comes on the heels of a recently filed federal securities class action lawsuit against The Toronto-Dominion Bank and several of its most senior executives and alleges that they misled investors about the extent of the bank's anti-money laundering (AML) program deficiencies.
Hagens Berman urges only investors who purchased The Toronto-Dominion Bank (NYSE:TD) shares on the New York Stock Exchange and who suffered substantial losses to submit your losses now.
The Toronto-Dominion Bank Securities Class Action (TD):
The truth about TD's malfeasance emerged on October 10, 2024, when the U.S. Department of Justice announced that TD's U.S. subsidiaries had pleaded guilty to violating the Bank Secrecy Act and conspiracy to commit money laundering. The resolution included a $3.09 billion fine, an asset cap, and increased regulatory oversight.
The DOJ found that TD Bank intentionally did not automatically monitor a staggering 92% of transactions, or $18.3 trillion, from January 1, 2018 to April 12, 2024. The DOJ also said that the company's internal audit "repeatedly identified concerns about its transaction monitoring program, a key element of an appropriate AML program necessary to properly detect and report suspicious activities."
Deputy Attorney General Lisa Monaco said "[f]or years, TD Bank starved its compliance program of the resources needed to obey the law."
Attorney General Merrick Garland said "[b]y making its services available for criminals, TD Bank became one[,]" adding "[t]oday, TD Bank also became the largest bank in U.S history to plead guilty to conspiracy to commit money laundering[]" and "TD Bank chose profits over compliance with the law."
Following the announcement, TD Bank's stock price plummeted, losing over 10% in the two days after the news broke.
"TD Bank's alleged misconduct represents a serious breach of trust with its investors. We believe that investors deserve to be compensated for the losses they suffered as a result of the bank's alleged misleading statements," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Toronto-Dominion and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »
If you'd like more information and answers to frequently asked questions about the Toronto-Dominion case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding Toronto-Dominion should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email TD@hbsslaw.com.
About Hagens Berman Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
