The statements below are Rochon Genova’s account of this case. They reflect allegations or the firm’s position and have not been determined by a court unless a settlement or judgment is noted.
About This Case
Market Timing
Long-term mutual fund investors allege that frequent trading diluted returns in certain AIC and CI mutual funds.
Stage: Damages trial complete, over $170 million awarded
The Claims
In September 2003, the Attorney General of New York announced the results of an investigation into what was referred to as ‘market timing’ trading in American mutual funds. That investigation led to a series of settlements requiring the offending funds to pay billions of dollars.
Shortly after the results of that investigation were announced, the Ontario Securities Commission (the ‘OSC’) launched its own investigation into similar practices in Ontario. It resulted in five fund managers, including both defendants, entering into settlement agreements with the OSC pursuant to which they paid over $200 million to their respective funds.
This class action was commenced against the five funds that settled with the OSC. Three of those funds have since settled with the plaintiffs. As a result, the trial proceeded only against AIC Limited, now known as AIC Global Holdings Inc. (‘AIC’) and CI Mutual Funds Inc., now known as CI Investments Inc. (‘CI’). Both are sizeable mutual funds in the Canadian market.
This action arises out of conduct by which AIC and CI allowed certain large, sophisticated investors to engage in frequent trading in their funds. The plaintiffs allege that this frequent trading diluted the returns of long-term investors in the funds.
The Class
Any investors who held money in AIC funds from Jan. 1, 1999, to Sept. 30, 2003, or CI Mutual funds from Sept. 1, 1998, to Sept. 30, 2003.
Updates
Class action was commenced in 2006.
On December 13, 2013, this action was certified by the Supreme Court of Canada. A subsequent case management order split the trial of this proceeding into two stages: a trial in respect of liability, and a trial in respect of damages.
The liability trial was held in February, March and June 2022.
On February 13, 2023, Justice Marcus Koehnen of the Superior Court of Justice issued reasons for judgment in respect of the liability trial. Justice Koehnen found that both Defendants, CI Mutual Funds Inc. and AIC Limited, breached their duty of care to prevent ‘market timing’ in their funds.
The damages trial was heard before Justice Koehnen between
March 28 to May 16, 2025.
On July 16, 2026, Justice Koehnen ordered CI Mutual Funds Inc. and AIC Limited to pay Class Members damages and interest in excess of $170 million. The damages decision, indexed as Fischer v. IG Investment Management Ltd. et al.
, 2026 ONSC 4142, is available here.
Source: Rochon Genova
Who May Be Eligible
Any investors who held money in AIC funds from Jan. 1, 1999, to Sept. 30, 2003, or CI Mutual funds from Sept. 1, 1998, to Sept. 30, 2003.
Source: Rochon Genova
Disclaimer: This information is sourced from Rochon Genova. It is provided for general information only and does not constitute legal advice. Always verify details with the original source before taking any action.
Legal disclaimer: Information on this page is general in nature and does not constitute legal advice. ClaimBar tracks class action settlements and provides updates. Always seek professional legal advice for your specific circumstances.
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