A group of mutual fund investors will appeal a recent Ontario court ruling denying their right to launch a class action suit against five Canadian fund companies. The investors claim the firms did not compensate unitholders enough for harm done by market timers allowed to zip in and out of their funds from 1998-2003. "We are planning to appeal the decision this week," lawyer Joel Rochon said yesterday. He argued that Canadian investors deserved $500-million to $600-million more in restitution than the $205-million they got from fund companies after settlements with the Ontario Securities Commission. The ruling dismissed the investors' claim, suggesting the OSC process gave investors access to justice. Mr. Rochon said he disagrees because the OSC proceedings were "not transparent" in releasing the formula for compensation, and the settlements did not prohibit further legal action by investors.
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