TD Bank will pay $20 million to settle a class action lawsuit accusing it of aiding a Ponzi scheme that allegedly bilked over 1,000 European investors of more than $223 million, Reuters reported, citing the plaintiff’s lawyer in the case.
The preliminary settlement, which is subject to court approval, resolves claims that TD Bank, the U.S. banking arm of Toronto-based TD Bank Group (NYSE: TD), failed to properly monitor trust accounts that held investors’ money and ignored its duty to investigate suspicious activities under U.S. anti-money laundering rules.
In a brief statement confirming the settlement, TD only said, “We are pleased that this matter is close to a resolution.”