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Cases » Transamerica Fund
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NEW - SETTLEMENT UPDATE – 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. NEW - SETTLEMENT UPDATE – The majority of the Class has received the court approved notice of certification and settlement approval. The notice must still be delivered to some Class Members. By order of the Ontario Superior Court of Justice, the deadline for Transamerica to mail the notice to that group has been extended by 90 days. To view or download a copy of the Superior Court’s order click here. NEW –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 Settlement Update - Update The Representative Plaintiff Joseph Fantl and the Defendant, Transamerica Life Canada have concluded a settlement agreement, subject to the approval of the Court, to settle the Excess Management Fee claim in this proposed class proceeding. The aim of the settlement is to return any excess management fees that were charged to Class Members and to compensate affected Class Members for any related losses. The parties have 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 are being examined and verified for their accuracy and fairness by independent accounting experts retained by each party. Under the proposed settlement agreement, compensation will be paid to Class Members pursuant to the provisions of the restitution program set out in the settlement agreement. The settlement agreement is subject to Court approval and has not yet been approved by the Court. A complete copy of the settlement agreement may be downloaded or viewed at the link below. As of today, this action has not yet been certified as a class proceeding. Under the terms of the proposed settlement, Transamerica has agreed to a consent certification of the Plaintiff’s lawsuit as a class proceeding for settlement purposes. Approval Hearing – The Ontario Superior Court of Justice must approve the settlement agreement for it to bind the parties or the Class Members. A court fairness and settlement approval hearing is currently scheduled for August 10 through 12, 2009 in Toronto. If the Court is satisfied with the fairness of the settlement, it should be approved by the Court by way of written reasons to be delivered by the Court following the hearing. How to Comment on the Settlement Agreement - Class Members who wish to make submissions to the Court in support of, or in opposition to, the proposed settlement must provide notice to the Court by sending a written submission to REO. REO will forward any such submissions to Transamerica and to the Court. Submissions are optional (no Class Member is required to make submissions). Any such written submissions must be delivered to REO at the address below by no later than July 31, 2009. The written submissions should include:
Notice of Settlement Approval Hearing – to view or download a copy of the Court approved notice of the settlement approval hearing, 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 Contact Information For more information about the class action please contact REO at: Please do not call the Court about this class action. Court staff will not be able to answer your questions about the case. 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 the following 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:
This action has not yet been certified as a class proceeding. One aspect of the claim relates to one specific fund, the Can-Am Fund, and whether that fund effectively cloned or paralleled the S&P 500. Another aspect of the claim relates 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. In 2006 and the first half of 2007, the parties prepared and exchanged certification motion materials (evidence from each side in affidavit form), conducted cross-examinations on the affidavit evidence, and exchanged written arguments (factums) for the then pending certification motion. The certification motion was scheduled to be heard the week of June 18th 2007. The motion did not proceed that week. As discussed below, the Parties subsequently reached an agreement in principle to settle the excess management fee aspect of the class action. The other aspect of the claim, which relates to the question whether the Can-Am Fund cloned or replicated the performance of the S&P 500, is not settling at this time. Proposed Settlement of the Management Fee Overcharge Claim The Representative Plaintiff and Transamerica have reached an agreement in principle to settle the claim for the overcharging of management fees for all of the affected funds. 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. Under the agreement in principle, and in very general terms, Transamerica will compensate policyholders who invested in the funds in question for any excess management fees charged and for related losses. Compensation will be paid pursuant to a restitution program to be agreed by the parties and approved by the Ontario Superior Court of Justice. While the precise number of affected policyholders is unknown, the proposed settlement will affect over 100,000 policyholders from coast to coast. The parties are working to have compensation paid to affected policyholders as quickly as possible. The parties are currently analyzing data, documents and other information, and negotiating the specific details of the restitution program. There are still various and very important steps to be completed before the policyholders receive compensation. The amount that any individual may receive and the total value of the settlement are unknown at this time. Before compensation can be paid to any individual, the final settlement agreement including the restitution program must be completed and approved by the Court at a fairness hearing. The fairness hearing, previously scheduled to proceed on June 15 through 17, 2009 is now scheduled proceed in Toronto on August 10 through 12, 2009. At the fairness hearing, the Court will review and consider the terms of the settlement of the management fee aspects of the claim. If the Court is satisfied with the fairness of the settlement reached between the parties, the settlement should be approved by the Court at that time. As stated above, the Court must approve the terms of the settlement. Please note that the hearing dates are tentative and subject to change. We are trying to keep this settlement process moving forward as quickly as possible and prudent in the circumstances. The accounting firm of Price Waterhouse Coopers Inc is assisting REO with the negotiations, review and analysis of the data and the proposed restitution program. Pursuant to the agreement in principle, the policyholders will not have to pay the legal fees and disbursements of class counsel because they will be paid directly by Transamerica. In short, as a result of this agreement, the policyholders’ compensation will not be affected by the class counsel’s legal fees. The amount of those fees and disbursements must be agreed upon by the parties and approved by the Court or, if the parties are unable to agree, the Court will be asked to fix the amount. A motion to approve or fix the amount of the legal fees and disbursements of class counsel is scheduled to be heard at the conclusion of the fairness hearing in August 2009. To view a list of frequently asked questions and corresponding answers please click here. To Register with REO for this class action please fill out our online registration form here. If you register with our firm, we will be able to send you periodic email updates or notices relating to the case and its status. Contact Information For more information about the class action please contact REO at:
Please do not call the Court about this class action. Court staff will not be able to answer your questions about the case. Q: Am I a class member in this action? “All persons, or beneficiaries, trustees or other legal or personal representatives of such persons, in Canada and elsewhere who had at any time entered into contracts with the defendant, NN Life Insurance Company of Canada or its predecessors pursuant to which the persons beneficially or notionally invested in units of, or which contracts otherwise provided benefits based upon the value of, the segregated funds listed below (collectively, the “Transamerica Funds”) which were offered as investment options by the defendant, NN Life Insurance Company of Canada or its predecessors:
Q: Has this lawsuit been certified as a class proceeding? Q: How will I know whether and when this action is certified as a class proceeding? Q: Do I need to register with REO to be included in the class action? Q: When will this action be certified? Q: What do I have to do to participate in this class action? Q: What do I do if I want to opt-out of this class action? Q: When will I receive compensation under the settlement? Q: How much compensation will I receive under the settlement? Q: Am I responsible for REO’s legal fees? Q: Is the entire action being settled? Q: Can REO answer my questions about the performance or tax implications of my investments? |
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