A class-action lawsuit has been brought against IG Investment Management Ltd., CI Mutual Funds Inc., Franklin Templeton Investments Corp., and AGF Funds Inc., by a group of Canadians who invested in their mutual funds between 1998 and 2003. The fund companies are accused of breaching their fiduciary duties to investors, and of being negligent and allowing market timing. The claim has been filed with the Ontario Superior Court of Justice.
"The actions of the management companies have affected thousands of Canadian investors who have unwittingly been deprived of hundreds of millions of dollars in investment savings," said Joel P. Rochon, a partner with Rochon Genova, representing the investors.
An investigation by the Ontario Securities Commission concluded that market timing took place in the four funds. In a settlement reached earlier this year, the firms said they will pay $150 million to the injured investors, but the investors' lawsuit charges that the payment does not reflect their losses adequately.