Home

Class action against SP foundations doing business in Quebec

If you have questions about the authorized class action against all Canadian scholarship plan (SP) foundations doing business in Quebec, see the questions and answers below.

Note that the request for a class action authorization does not originate from a Kaleido client. This situation has no impact on the normal course of business.

I heard about a lawsuit against Kaleido. What’s going on?
  • Kaleido has been informed that a class action has been authorized against all Canadian scholarship plan (SP) foundations doing business in Quebec.
  • The litigation concerns the interpretation of the regulations on the application of the sales charge ($200.00/unit vs. $200.00/plan) for Quebec residents who subscribed to a group SP after July 19, 2013, and who paid more than $200.00 in sales charges per plan.
  • The class specifically affects subscribers from this group who subsequently cancelled their plans and lost more than 20% of their contributions due to sales charges.
  • The case is proceeding. We will not comment on the lawsuit during the legal proceedings.
I am a Kaleido client. Does this concern me?

The class and subclass included in the class action are as follows:

  • Class:

All persons residing in Quebec who, at any time since July 19, 2013, signed a contract with any of the defendants in which they were a subscriber and/or contributor (either primary or joint) for a registered education savings plan (“RESP”), and who were charged a fee (referred to as “enrolment fee,” “sales charge,” and/or “membership fee”), including the commissions of the distributor and its sales representatives, exceeding $200.00 per plan;

  • Subclass:

All persons residing in Quebec: (1) who at any time since July 19, 2013, signed a contract with any of the defendants in which they were a subscriber and/or contributor (either primary or joint) for an RESP; (2) who cancelled their RESP after that date; and (3) lost more than 20% of their contributions on account of enrolment fees, sales charges, or membership fees.

Will my sales charges still be refunded at maturity?

Yes. The terms and conditions of your contracts continue to apply.

Will my child’s RESP be affected by this situation?

Not at all. Our clients’ money is not at risk, and this situation has no impact on plan returns or the normal course of business.

Is my money safe?

Yes, absolutely. Our clients’ money is not affected, and this situation has no impact on plan returns or the normal course of business.

Will I have to pay any fees or suffer any losses if a judgement orders the foundations involved to pay damages?
  • Our clients’ money is not at risk, and this situation has no impact on plan returns or the normal course of business.
  • The case is proceeding, and we will not comment on the lawsuit during the legal proceedings.
What are the losses for your clients?

Our clients’ money is not at risk, and this situation has no impact on plan returns or the normal course of business.

Is this a new lawsuit in connection with dissatisfied former clients of Universitas/Kaleido?

The class action was not initiated by a client or former client of Kaleido, and is in no way related to the easing of the old qualification criteria.

Are Kaleido’s operations compromised?

Not at all. The situation has no impact on our normal course of business.

How will Kaleido deal with the implications of the class action? Could Kaleido be in financial difficulty as a result of these legal proceedings?

The situation has no impact on our normal course of business.

What is a class action?

A class action is a legal procedure that allows one person to file a legal claim on behalf of a group of people in a similar situation in order to have the claim jointly resolved in a single proceeding. A class action requires court authorization to proceed, based on various simplified criteria. The judgement authorizing a class action allows the action to proceed, but does not in any way determine the merits of the plaintiff’s claims.

What is the meaning of the judgement authorizing the class action?

The judgement means that the case can proceed to Court for an eventual ruling on the plaintiff’s claims. At this stage, the judgement does not mean that the plaintiff’s allegations are founded. Kaleido believes that its practices are legal and intends to defend itself against the class action.

Is Kaleido challenging the class action filed against it?

Yes. Kaleido believes that its practices are legal and intends to defend itself against the class action.  Given the legal proceedings under way, Kaleido will not comment on the conduct of the case.

How long will it be before a decision is handed down?

It’s difficult to estimate the time and delays involved in hearing the class action, which depend on several factors.  It will likely take months before the Court issues a decision.

How can I register for the class action?

If you meet the class criteria described in the judgement authorizing the class action, you are automatically included in the class action. No other action is required on your part.

Can I opt out of the class action if I disagree with it?

If you wish to opt out, you must notify the clerk of the Superior Court of Quebec for the District of Montreal of your intentions in writing at 1 rue Notre-Dame Est, Montreal, H2Y 1B6 no later than September 30, 2021. Be sure to mention file no. 500-06-000932-182 in your letter.