TIP Investors Win Against Industrial Alliance Subsidiary Held Liable in Judgment; Court to Reassess $98 Million Claim

All former TIP investors are asked to update their contact information by emailing [email protected] or calling 514-737-7422

MONTREAL, Nov. 12, 2025 /CNW/ - Paul Gagné, President of TIP Funds Canada and its manager TIP Investment Advisors Ltd., announces a decisive legal victory following a judgment of the Superior Court of Québec dated October 29, 2025. The Honourable Justice Antoine Aylwin, J.C.S., held Felcom Data Services Inc. -- now part of IA Financial Group ("Industrial Alliance") -- liable for the wrongful termination of TIP's administrative services agreement.

Filed on behalf of former TIP Fund investors and manager, the claim addressed the severe harm caused by the abrupt and unjustified withdrawal of fund administration services in 2002. The termination of essential services ("back-office") without notice, lead to regulatory intervention, the forced liquidation of the TIP Funds, and significant investor losses. Notably, in 2001, the two TIP Funds ranked among Canada's top ten mutual funds out of more than 3,000 funds.

Having established liability and fault, the Court ordered the matter to proceed to the damages-assessment phase. Damages had been previously estimated by the TIP's expert reports in 2007 at $98 million, the amount claimed in the proceedings. This assessment will now be updated to determine the final claim. Ultimately, the judge retains sole authority to determine the quantum of compensation.

The Court rejected Industrial Alliance's subsidiary arguments and found that:

• It had no contractual or legal basis for termination
• It was not misled at the time of contract signing
• The termination occurred at a critical and inopportune moment, in difficult market conditions that proved fatal to the funds
• Explanations later offered during litigation lacked credibility or were contradicted

"This judgment marks a major step toward justice and investor recovery, -- who are too often overlooked in Canadian financial disputes," said Gagné. "It validates the perseverance of investors who have waited for just compensation. Our focus now turns to securing full and equitable reparation, following a 23-year legal saga."

The parties have been ordered to file a schedule for the damages phase in 30 days.

SOURCE TIP Investment Advisors Ltd.

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