A Quebec court ruled that Wealthsimple has fulfilled its commitment under a settlement of a proposed class action suit on behalf of crypto investors, wrapping up the case.
A proposed class action on behalf of crypto investors targeted two pairs of firms — Wealthsimple Financial Corp. and Wealthsimple Investments Inc. and Shakepay Inc. and Shake Labs Inc. — alleging that the firms didn’t properly disclose the costs of trading.
Among other things, it alleged that investors were enticed to trade crypto on the firms’ platforms with promises of “commission free” trading, but that the firms maintained trading spreads that amounted to hidden fees.
The plaintiffs in the action sought reimbursement for investors, punitive damages of $10 million per firm, and a change in the firms’ business practices.
Last year, Wealthsimple reached a settlement that saw it agree to pay a total of $750,000 to resolve the case — while the action continued against Shakepay.
The allegations have not been proven, and the Wealthsimple firms settled the case without admitting the allegations, or conceding any liability.
Now, the Quebec Superior Court has granted an application for closing judgment from Wealthsimple, wrapping up the case.
According to the decision, after legal fees and expenses, there was $430,392 available to investors that traded crypto on the firms’ platforms between August 2020 and October 2023 — resulting in payouts of just $3.34 per investor.
Those distributions were completed last fall, leaving a balance of $2,625.51 — representing payments that couldn’t be completed for one reason or another. That remaining amount was split between a legal assistance fund, Fonds d’aide aux actions collectives, and a Montreal food bank, the MADA Community Centre.