Some Canadians can now put in a claim to receive a payout from a CIBC Mutual Funds and Renaissance Mutual Funds class-action settlement.
On Friday, Toronto law firm Kalloghlian Myers LLP announced that the Ontario Superior Court of Justice approved a class action settlement with CIBC and CIBC Trust Corporation for $11 million.
The settlement resolves claims on behalf of eligible claimants who held units of a CIBC mutual funds trust or Renaissance mutual fund trust at any time on or before Sept. 5, 2025, not including those held through a discount broker.
There’s a separate $26-million settlement for Canadians who held units of a CIBC mutual fund or a Renaissance mutual fund through a discount broker.
The allegations
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The lawsuit focuses on CIBC and Renaissance mutual funds, which are investment funds that pool money from investors to purchase a diverse mix of stocks, bonds, and other securities.
According to the notice, it’s alleged that CIBC and CIBC Asset Management (CAM) paid fees or trailing commissions to discount brokers out of the CIBC Mutual Fund and the Renaissance Mutual Fund assets.
“CIBC is the manager of the CIBC Mutual Funds. CAM is both trustee and manager of the Renaissance Mutual Funds,” reads the statement. “It is alleged that the Defendants breached its duties as a trustee and fiduciary because the trailing commissions paid to discount brokers are excessive, inflated and/or unearned.”
Although both companies have agreed to a settlement, it’s considered a compromise and not an admission of liability or wrongdoing.
Are you eligible?
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To receive compensation, you must meet one or all of the following eligibility requirements:
- You previously held, but no longer hold units of a CIBC mutual fund or a Renaissance Fund on or before Sept. 5, 2025
- You currently hold CIBC mutual fund units
- You previously held or currently hold Renaissance mutual fund units
If you hold or still currently hold both CIBC and Renaissance mutual funds, you could be eligible for compensation.
How much could you receive?
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According to a court document, after taxes and legal fees, the remainder of the $11-million settlement will be allocated accordingly:
- 38.11 per cent will be paid to current CIBC mutual fund holders
- 59.05 per cent will be paid to former CIBC mutual fund holders
- 2.84 per cent will be paid to Renaissance fund holders
If you’re eligible, you could receive $32 per claim. Payments will be made by e-transfer or cheque.
How can you submit a claim?
If you’re a current CIBC or Renaissance mutual fund holder, you don’t need to submit a claim if you’re eligible, as payments will be directly deposited into the mutual fund in which you hold units.
However, if you previously held or currently don’t hold any CIBC mutual fund units, you must submit a claim form by Nov. 18, 2026. In this case, you must have proof that you are a former CIBC holder and have documentation (e.g. account statement, screenshot, broker confirmation, etc.) showing that you held unit(s) in one or more CIBC mutual funds before Sept. 5, 2025.