KingsGate Wealth Management Services, the parent company of KingsGate Securities and KingsGate Insurance Group, has amended an ongoing lawsuit against Industrial Alliance Securities surrounding the termination of several critical contracts with the firm.
The lawsuit claims that the termination by Industrial Alliance was unlawful, and recently resulted in KingsGate having to cease all retail operations in December 2008. The lawsuit was originally issued by the Ontario Superior Court in October 2007, and claims damages in excess of $3 million plus punitive damages.
Fred Roberts, CEO of the KingsGate Group of Companies, said: We are extremely disappointed with the way our partnership evolved with Industrial Alliance Securities. We were very proud that our small, independent firm was able to attract the attention of a huge company like Industrial Alliance back in 2005. Unfortunately, Industrial Alliance did not live up to the commitment we had expected, and we now have little choice but to close our doors.
Walter Bobko, COO of KingsGate and former vice president of Industrial Alliance Securities, added: I am deeply disappointed that it has come to this, as we have put so much time and effort into our firm over the past 10 years. This was so unnecessary.
