Overview
This class proceeding concerns the improper management of pension funds and their investments.
In 2002, the Financial Services Commission of Ontario issued an internal report that raised serious questions about the Participating Co-operatives of Ontario Trusteed Pension Plan’s (the "Plan") lack of operational policies and procedures in the area of investment policies and practices, particularly dealings involving derivatives. The report also suggested there was inadequate supervision of agents, potential conflicts of interest regarding such agents and potential contraventions of the Ontario Pension Benefits Act.
This action alleges that the current and former trustees of the Plan, a former investment consultant and asset manager, the former and current Plan custodians, the actuaries and the legal advisors of the Plan acted negligently and breached their fiduciary duties in their governance of the Plan and in their investment and management of the Plan’s assets.
The action was certified as a class proceeding by Order of The Honourable Mr. Justice Winkler dated February 10, 2005.
A settlement of this action was reached between the parties and was approved by the Ontario Superior Court of Justice by order dated April 17, 2008. Briefly, the settlement provides for the payment of $13,926,195.50 to the Plan, less legal fees and expenses.
Koskie Minsky LLP also represented Plan members in related proceedings before the Financial Services Tribunal of Ontario. A mediated settlement was reached, whereby the Ontario Ministry of Finance agreed to pay $20,000,000.00 to the Plan.
The Parties sought and obtained an Order of the Financial Services Tribunal incorporating the terms of the Proposed FST Settlement on March 31, 2008.