International class actions handle currency conversion for settlement payouts by converting eligible foreign-currency trades into the fund currency before calculating losses, then paying authorized claimants in that fund currency. The distribution protocol names the exchange-rate source and the conversion date, and cross-border cases may keep separate funds by jurisdiction.
A settlement payout is the administrator's payment for an approved claim. Readers should check the protocol for three items: payout currency, rate source, and rate date. Those three controls decide the final amount more than market moves after filing.
Official resources:
- Read the official guidance from Irs — Use this primary source to verify the official guidance.
- Check eligibility on Legalclarity’s official study page — Use this page to check the study’s participation requirements.
Table of Contents
- What currency will you receive?
- Which exchange rate date controls your claim?
- How do cross-border cases split the money?
- How do you get paid in another country?
- What tax form do foreign claimants need?
- What if the currency fee is the recovery?
- Frequently Asked Questions
What currency will you receive?
Many Canadian securities settlements calculate all loss entitlements in Canadian dollars even when some purchases settled in another currency. The TDAM distribution protocol states that eligible foreign-currency trades are converted into Canadian dollars for loss calculation, with payment to authorized claimants in Canadian dollars TDAM distribution protocol. That approach simplifies pro-rata shares.
Every claimant is measured in the same unit before the fund is divided. It also means a claimant does not receive U.S. dollars merely because the trade was priced in U.S. dollars.
Which exchange rate date controls your claim?
The conversion-date rule varies by settlement. The Aphria distribution protocol uses the Bank of Canada noon rate on the transaction date, while other plans use the administrator's calculation date or a fixed date such as Sept. 11, 2024 Aphria distribution protocol. That date choice matters.
A transaction-date rate ties the loss to market conditions when the trade occurred. A calculation-date or fixed-date rate applies one common rate across claims. Older protocols that say noon rate cite a legacy benchmark. Effective May 1, 2017, the Bank of Canada discontinued noon and closing rates and now publishes a single indicative daily rate around 16:30 ET, according to the Bank of Canada announcement Bank of Canada announcement.
How do cross-border cases split the money?
Cross-border cases often keep money in jurisdictional pools rather than converting one global pool at payout. Tahoe Resources' global deal keeps a separate U.S. Net Settlement Fund. Each authorized U.S.
claimant receives a pro-rata share based on recognized loss, according to the Epiq declaration filed through the U.S. Tahoe settlement site. A claimant eligible in two countries must follow each settlement's filing rules. Approval in one pool does not create payment from the other pool.
How do you get paid in another country?
Administrators commonly pay by check or wire where applicable. Epiq's foreign-exchange practice lets claimants elect wire or check and reissues a rejected or returned wire as a check, according to court papers in In re Foreign Exchange Benchmark Rates Antitrust.
International payouts also require sanctions screening before funds go out. Disbursement platforms also run identity, fraud, tax-reporting, and multi-rail payment checks, according to LegalClarity and an Epiq distribution plan.
- Confirm whether your settlement pays only in its fund currency.
- Choose wire or check where the claim form offers an election.
- Verify bank details, mailing address, and name match before distribution.
- Respond fast if the administrator reports a rejected wire or stale check.
What tax form do foreign claimants need?
Non-U.S. claimants in U.S. distributions generally must furnish IRS Form W-8BEN or W-8BEN-E rather than Form W-9.
The IRS materials describe W-8BEN as the form for establishing foreign status and claiming treaty relief. Without valid documentation, the payer can apply 30 percent withholding on U.S.-source amounts. Claimants should submit the correct form during claims review, not after payment is calculated.
What if the currency fee is the recovery?
Conversion fees themselves can be the recovery. Ontario Superior Court approved a 100-million-dollar BMO settlement for undisclosed foreign-exchange fees in RRSPs and registered accounts, according to Investment Executive.
Distributions in that type of case are net of fees, taxes, and administration costs. Eligible account holders do not need to prove an exchange-rate loss beyond the covered fee.
Frequently Asked Questions
I bought in U.S. dollars. Will I be paid in U.S. dollars?
Not always. Many protocols convert the trade into the fund currency for calculation and pay all claimants in that currency.
Why does the protocol name a Bank of Canada noon rate after 2017?
It is using the legacy benchmark label from an older plan. Newer Bank of Canada practice is a single daily indicative rate.
My wire failed. Do I lose the payment?
No. The administrator can reissue a rejected or returned wire as a check if you keep your contact and bank information current.