Background:

• Parties: Plaintiff Peter Westwood (on behalf of TD Mutual Fund unitholders) v. Defendant TD Asset Management Inc.
• Allegations: Improper payment of trailing commissions by TD Asset Management to discount brokers for unprovided services, diminishing mutual fund values. Additional claims were made under the Securities Act for alleged misrepresentation in fund documents.
• Settlement: A $70.25 million settlement, inclusive of fees, taxes, and expenses, was proposed.

Key Court Decisions:

1. Approval of the Settlement:

   • Settlement deemed fair, reasonable, and beneficial to the class.
   • Funds are non-reversionary and held in trust to benefit class members.
   • No objections or opt-outs from class members.

2. Notice Plan:

   • Comprehensive notice dissemination across Canada in English and French (e.g., email, newspapers, and online platforms).
   • Claims period set for 180 days post-notice.

3. Distribution Protocol:

   • Compensation calculated based on trailing commissions paid.
   • Minimum claim value set at $25.
   • Remaining funds after distribution to go to the Osgoode Hall Investor Protection Clinic (cy-prés).

4. Counsel Fees & Disbursements:

   • $17.92 million in fees (25.51% of the settlement), with a reduction from the agreed 28% contingency.
   • Approved disbursements totaling ~$338,467 (including taxes).

5. Third-Party Funder:

   • Interim payment of $3.25 million to litigation funder.
   • Release of $400,000 security deposit upon settlement finalization.

6. Plaintiff Honorarium:

   • $10,000 awarded to Peter Westwood for exemplary efforts in advancing the class action.

Court’s Reasoning:

• The settlement and associated costs are proportional to the complexity and risks of the case.
• Extensive litigation efforts, including certification motions, expert reports, and mediations, justified the fee awards.
• Notice and claims processes ensured accessibility and transparency for class members.