U.S. District Judge Lewis A. Kaplan recently approved a $180 million settlement in a proposed class action case against Bank of New York Mellon Corp. The lawsuit alleged that the bank operated a deceptive foreign currency exchange program. Stoll Berne represented the putative class along with Bernstein Litowitz Berger & Grossmann LLP. The firms represented the State of Oregon on behalf of several public pension funds and others who claimed BNY Mellon misled investors by making deceptive public statements about its foreign exchange program in violation of securities laws.
The settlement concluded long-running litigation first brought in 2011, alleging that BNY Mellon told customers it provided the “best execution” for foreign currency trades when in reality it bought the currencies at the lowest price of the day and sold it at the highest, pocketing the difference.
In March, BNY Mellon paid $714 million to settle fraud claims by the SEC, the U.S. Department of Justice, the New York attorney general and others over the foreign exchange program. BNY Mellon also admitted certain facts and agreed to fire two executives implicated in the scheme.