Toronto-Dominion Bank (NYSE: TD) stock has been under pressure in the last two days given the negative news swirling around the firm. The stock lost over 4.1% in the last three days (from March 9^th, 2017 to March 13^th, 2017; Source: Google finance). This stock pressure could continue for some time as the group continued to face pressure from major brokerage houses as well. TD stock has risen 19.69% in the last one year (source: Google Finance) and investors could consider booking profits in the stock.

Lawsuit has been filed by Khang & Khang LLP, the firm against the bank. The investors who purchased or otherwise acquired Toronto-Dominion shares between December 3rd, 2015, and March 9th, 2017, inclusive (the Class Period), are asked to contact the firm in advance of the May 11th, 2017 lead plaintiff deadline. Moreover, CBC News on March 10th, 2017, has revealed an article concerning the pressures placed on Toronto-Dominion branch employees to sell customers unnecessary products and some Toronto-Dominion  employees had admitted that they broke the law at their customers’ expense in order to drive sales, claiming they were desperate to meet sales goals or avoid being fired. The article had further alleged that hundreds of current and former Toronto-Dominion Bank employees had claimed the bank was “poisoned,” “stress inducing,” “insane” and had “zero focus on ethics.” Glancy Prongay & Murray LLP (GPM) is investigating potential claims on behalf of investors of Toronto-Dominion concerning the bank and its officers’ possible violations of federal securities laws. When this news was revealed to the investing public, the value of TD stock dropped, eroding the value of the stock and harming the investors’ investment in the stock. Toronto-Dominion shares had dropped most in 8 years after CBC report.

Additionally, other tellers had detailed how they had increased the customers’ overdraft protections without telling them, and quietly increased their Visa card limits to meet sales targets. As per some tellers, they had upgraded the customer accounts to those with higher fees without notice. They described how the managers hovered over them, pushing them to sell more. The report had also quoted customers who noticed additional fees on their statements and who called the practices “dishonest.”

There was inevitable comparison is to the situation faced by Wells Fargo (WFC), which was fined US$185-million, on September 8th, 2016, by U.S. regulators when abusive sales practices by the bank were uncovered.

Toronto-Dominion got downgraded by equities researchers at Royal Bank of Canada from an “outperform” rating to a “sector perform” rating in a report. They now have a $68.00 price target on the stock, down from their previous price objective of $73.00. This is due to the fact that the news reports could inflict damage that may have a “material impact on the bank’s reputation” and earnings and valuation.