The Class Action

REO is prosecuting a class action lawsuit against Transamerica Life Canada. This class action is brought by the representative plaintiff (Joseph Fantl) on behalf of persons who invested or purchased units in a number of segregated funds that were offered as investment options by the defendant, NN Life Insurance Company of Canada (or its predecessors) and subsequently Transamerica Life Canada (for a complete list of the affected funds please click on the “Settlement Agreement” link below).

One aspect of the claim relates whether the Can-Am fund effectively “cloned” or replicated the performance of the S&P 500. Another aspect of the claim related to the alleged overcharging of management and other fees in respect all of the funds in question. To view the second fresh as amended statement of claim please click here. Transamerica denies the claim’s allegations and the allegations have not yet been proved in Court.

Certification of Cloning Claim

The hearing of the Plaintiff's motion for the certification of the "cloning" claim is currently scheduled to proceed in Toronto on April 9 & 10, 2013.

Settlement of Management Fee Overcharge Claim

In 2009 the Parties Canada reached an agreement to settle the excess management fee aspect of the class action. The other aspect of the claim, relating to the question whether the Can-Am Fund cloned or replicated the performance of the S&P 500, did not settle at that time. The aim of the settlement was to return any excess management fees that were charged to Class Members and to compensate affected Class Members for any related losses. The parties developed a formula for calculating the amounts owing to individual Class Members. The settlement formula and the financial and policyholder information used to calculate the amounts owing to Class Members were examined and verified for their accuracy and fairness by independent accounting experts retained by each party. Under the settlement agreement, compensation was paid to Class Members pursuant to the provisions of the restitution program set out in the settlement agreement.

Settlement of Management Fee Overcharge Claim Approved – On August 10, 2009, the Ontario Superior Court of Justice approved the proposed settlement of the Excess Management Fee Claim in this proceeding and certified the Excess Management Fee Claim as a class proceeding. A formal notice of certification was delivered to the class. To view or download the settlement approval and certification click here.

Donation to the Heart & Stroke Foundation – The Certification and Settlement Approval Order was, by order of the Ontario Superior Court of Justice, varied to accelerate the date by which the de minimus amounts are to paid the Heart & Stroke Foundation. As a result of this settlement, the Heart & Stroke foundation has received to date over $23,000. To view or download a copy of the Superior Court’s order click here.

Notice of Settlement Approval Hearing – to view or download a copy of the Court approved notice of the settlement approval hearing, click here.

Press Release - To view the joint press release issued by REO, on behalf of the Representative Plaintiff, and Transamerica regarding the settlement of the management fees issue please click here. For the French version please click here.

Summary of the Settlement Agreement – to view or download a summary of the proposed settlement agreement, click here.

Settlement Agreement - to view or download a copy of the proposed settlement agreement, click here.

Notification de l’Audition pour l’Approbation – Pour voir ou télécharger une copie de la notification de l’audition pour l’approbation approuvé par le Tribunal, Appuyez Ici.

Sommaire de la Convention De Règlement – Pour voir ou télécharger un sommaire de la convention, Appuyez Ici.

La Convention De Règlement – Pour voir ou télécharger une copie de la convention, Appuyez Ici.