Q: Hi Peter. TD has been fined $3 billion by US authorities for their drug related money laundering transgressions (vs only $9 million in Canada). TD remains exposed to potentially an unlimited number of class action suits from the families of fentanyl victims, both in the US and Canada.
Do you believe that this class action exposure, as well as the potential for additional fines from Canadian authorities, to be a credible risk that may not be reflected in the current share price? I am concerned that this may be a drag on the stock for a lengthy period and am contemplating swapping my TD holdings for other Canadian banks. Your thoughts?
Do you believe that this class action exposure, as well as the potential for additional fines from Canadian authorities, to be a credible risk that may not be reflected in the current share price? I am concerned that this may be a drag on the stock for a lengthy period and am contemplating swapping my TD holdings for other Canadian banks. Your thoughts?
5i Research Answer:
While there are numerous lawsuits, we do not see any of them being material to the company. Most...