Toronto-Dominion to Record C$153 Million for Legal Costs From Rothstein
Toronto-Dominion Bank (TD), Canada’s second-largest lender, will record an after-tax charge of C$153 million ($152.7 million) in the fiscal first quarter related to litigation costs.
The expense equals about 17 cents a share, the Toronto- based bank said today in a statement.
The charge is related to litigation involving disbarred Florida attorney Scott Rothstein, who admitted running a $1.2 billion Ponzi scheme, Maria Leung, a bank spokeswoman, said in a phone interview. Toronto-Dominion lost a $67 million jury verdict this month over an investor group’s claims that it helped Rothstein by telling victims their money was safe as he depleted accounts.
“As a result of recent adverse judgments, the bank has taken prudent steps to re-assess its litigation reserve,” Toronto-Dominion said in the statement. The bank said it will consider all options including appeal and intends to defend itself “vigorously” in all cases,
Toronto-Dominion is scheduled to report first-quarter results March 1.
To contact the reporter on this story: Sean B. Pasternak in Toronto at spasternak@bloomberg.net.
To contact the editors responsible for this story: David Scanlan at dscanlan@bloomberg.net; David Scheer at dscheer@bloomberg.net.
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